Amid AI Surge, Real Economy Sees Investment Potential
Ulrike Hoffmann-Burchardi, Chief Investment Officer for UBS Wealth Management in the Americas, recently suggested during a financial conference in Miami Beach that investors should reconsider asset allocation in the age of artificial intelligence, shifting their focus toward the real economy.
She explained that while AI is transforming industries, it may pose challenges for traditional software-centric companies. In contrast, firms engaged in infrastructure, resource development, and industrial manufacturing could gain advantages in this new technological era.
Transitioning from Digital to Real Economy
Ulrike revealed that her team is actively rebalancing portfolios, moving away from digital-focused assets toward real economy investments. This includes companies in industrial manufacturing, energy production, and raw material extraction.
- Industrial equipment manufacturers benefit from rising demand for AI-related hardware.
- Energy producers play a pivotal role in the green transition.
- Industrial and mining firms support the backbone of modern economic operations.
The Strategic Shift in Investment Thinking
This strategic change reflects broader shifts in the global economic landscape. As AI technologies become more embedded in real-world applications, demand for computing power, energy, and raw materials is set to surge, positioning real economy players at the forefront of the next wave of growth.