Davy 'avoiding overheated sectors' like AI

The financial advisory and stockbroking firm said it will be increasing exposure to emerging markets like Latin America

In the company’s latest Wealth View report for the final quarter of the year, Davy noted that it is too early to say whether AI is currently in a bubble. File Picture: PA

Financial advisory and stockbroking firm Davy has said it is “avoiding overheated sectors” such as AI and meme-stocks as “valuations are stretched” and instead is increasing its portfolio exposure to Latin American equities.

In the company’s latest Wealth View report for the final quarter of the year, Davy said there has been a shift in investor focus from trade policy uncertainty to the broader implications of those policies on inflation, consumer behaviour and corporate profit margins.