The US S&P 500 index has gained 18% this year. Many money managers have been caught out. Their defensive focus on rising inflation and interest rates left them blindsided by big gains in Artificial Intelligence (AI) stocks. There’s no question that long-term investors should be exposed to AI in their portfolios. It is no fad and will drive efficiencies and profitability across diverse industries for years to come in ways we cannot yet imagine.