Veteran macro investor Jordi Visser predicts double-digit stock market returns over the next twelve months, despite widespread bubble concerns. Visser argues that AI disruption is already driving real revenue growth, not speculative froth.
Visser highlights a 'benchmark arbitrage' in the S&P 500, where index performance diverges sharply from individual stocks. He says many investors are missing the early-stage growth in semiconductors and AI.
The semiconductor market remains highly concentrated, with massive investments flowing into key players like Nvidia. Demand for computing power is expected to surge over the next five years, driven by humanoids and space exploration.
Investors are now focused on finding supply chain bottlenecks to capitalize on shortages before the crowd. Visser warns that while AI demand is insatiable, power constraints could create supply issues.
He also notes that chemical stocks are undervalued relative to current oil prices, presenting a steady growth opportunity.