Excess Returns · Friday, August 14, 2026
Jim Paulson suggests the technology sector, which has already seen volatility, may experience further weakness. He believes the current excitement around AI, while here to stay, has led to over-discounting of future prospects, potentially causing a significant correction in tech and communications stocks.
“Well, tech center, tech center, uh, uh, tech sectors already been down like 15% from its highs, uh, at one point this year. So it's been really, really volatile.”
“Uh, some of this AI excitement finally gives way. Not that it's, not that it's going to go away. I think AI is here to stay, but I think the, uh, immediacy and discounting a lot of future into now is probably a little overdone.”
“But I think a lot of that's going to be centered in new era plays and, you know, communications and technologies sectors of the marketplace plays, maybe they suffer collectively, they suffer a bare fall bare market, 20% decline in those stocks.”