The Two Johns: Infl-AI-tion problems

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.

In episode 23, they return to inflation following the recent rise in bond yields: why inflation remains stubborn, how central banks are now finally responding, and what a prolonged period of rising prices could mean for investors. They explorethe structural pressures shaping the outlook, from geopolitical tensions and government debt to climate change, labour shortages, and competition for capital, and discuss where opportunities might emerge, including commodities,gold, healthcare, and infrastructure.

The conversation then turns to the AI boom and the extraordinary spending behind it. Could, as with earlier technology cycles, ambitious investment plans and stretched technology valuations leave markets vulnerable to shocks? And where might AI deliver lasting benefits, particularly in biotechnology and investment research? They consider how investors can gain selective exposure, why regulation matters, and why AI’s growing usefulness as a research tool still demands a final layer of human judgement.