In this White Paper, Three Cycles, One Pattern, we discuss what the history of complex financial structures tells us about today’s AI infrastructure boom.
Part of portfolio management is pattern recognition, the ability to look past the specific details of a current market narrative and ask whether we have seen this architecture before. The specific assets change. The vocabulary changes. The underlying structure, more often than we would like, does not.
We are writing this paper now because we believe the financial structures supporting the current artificial intelligence infrastructure build out share important characteristics with two prior cycles that ended badly for investors who did not examine what was underneath the headline numbers. We are not predicting an imminent collapse. We are doing what we believe a responsible advisor owes clients in a period of extraordinary market enthusiasm: describing the pattern clearly, so you can make informed decisions about your own exposure.