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Tech investment outpaces economic fundamentals -reversion inevitable when divergence widens

Photo by Adi Goldstein / Unsplash

Has artificial intelligence investment overheated? The numbers alone offer no straightforward answer. All investment involves initial fixed costs, generating losses before profits materialise, and leverage amplifies early outlays. The question is not whether spending appears large, but whether it has become excessive.

KC Law (Economist)

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KC Law (Economist)

Law Ka Chung is a Hong Kong economist and financial columnist.

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