Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by Nate Kreinbrink, Financial Planner at NelsonCorp Wealth Management. Welcome back, Nate.
Nate Kreinbrink:
Thanks again for having me.
Brandy Auterson-Hurst:
It seems like various topics affect financial markets at different times. What are some of the themes you’ve been watching recently?
Nate Kreinbrink:
Well, it’s not uncommon for us to see one or two major topics dominate the headlines when it comes to financial markets. For instance, interest rates, inflation have been in the headlines for quite some time now. However, there’s one other major theme that can continues to grow in popularity, and that’s artificial intelligence or AI. One way that we can visualize this is using Google Trend Searches, which I think we have a chart here that goes into this a bit more.
What we’re looking at here is the volume of searches comparing AI and inflation over the last couple of years. Inflation is the red line there, and AI is the blue line. Now, you can see that these two have ran pretty much neck and neck up until about the end of 2022 with inflation peaking about mid-year 2022. Now, since that time period, AI has taken off on a big run and has continued to climb to record levels.
Brandy Auterson-Hurst:
Okay. What does this data mean for viewers’ investments?
Nate Kreinbrink:
Well, inflation is a macroeconomic variable that impacts things like monetary policy and interest rates. When these two tend to rise, it seems to put a downward pressure on stock valuations. If we continue to see the structural growth of artificial intelligence or AI, this could be a great thing for investors as it could offset some of the volatility that we’ve seen with interest rates and inflation and what that does to equity pricing.
Brandy Auterson-Hurst:
All right, Nate, some great advice. Thanks for joining us today.
Nate Kreinbrink:
Thanks again.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on Ourquadcities.com.
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