GMO warns of an AI bubble akin to the dot-com era, citing high valuations and speculation. The firm prefers developed market value stocks and non-US small-cap value over AI investments. Ben Inker, co-head of asset allocation, emphasizes the risk in the AI trade and suggests diversifying into other opportunities like Japan’s small-cap value stocks.

Read more at Yahoo Finance: GMO warns AI is a ‘classic investment bubble.’ Here’s what to buy instead.