Howard Marks Warns AI Boom Mirrors Bubbles, Urges Measured Investing

• Howard Marks warns the AI boom mirrors classic market bubble patterns, despite AI's transformative potential.
• He highlights "irrational exuberance," disproportionate S&P 500 gains from AI stocks, and the significant use of debt to fund AI infrastructure.
• Marks notes uncertainty about AI's long-term winners, monetization, and the risk of obsolescence, comparing current market behavior to "lottery-ticket thinking."
• He advises investors to adopt a "moderate position" with prudence, avoiding extreme "all-in" or "sidelines" approaches.
• Marks also expresses deep concern about AI's potential for widespread job displacement and its impact on employment and social stability.

Why It Matters: AI boom shows bubble signs; investors must act cautiously.