Value investor Davis on how investing is changing in the age of A.I.

Chris Davis, chairman and portfolio manager at Davis Advisors discusses how every technological revolution — dating back to the days of the printing press but extending to the artificial-intelligence boom bow — goes through the cycle of "Amara's Law," in which the effects of a technology are overestimated in the short run but underestimated over the long term. As a result, Davis says investors are putting too much into the hype phase around AI, without looking at the long-term picture. Davis, in The Big Interview, echoes his recent paper on "Investing in the A.I. Age," which suggests that companies will fall into five categories: "emerging winners, enablers, users, insulated businesses and the walking dead," and talks about how investors can navigate the changing market and avoid the pitfalls of the latest technological evolution.

Davis is not the only value manager discussing the current market on today's show. In the Market Call, John Dorfman — a long-time classic value manager and the chairman of Dorfman Value Investments — gives his take on how current conditions have created some changes to the investment processes that have defined his career, noting that they are subtle but substantive in delivering better returns than many investors expect the value style to deliver in a growth-dominated market.

In today's "Talking Technicals" segment, Matt Fox, president of Ithaca Wealth Management, says that the stock market is poised for more gains and new highs, and that investors should "hold on and ride the trend higher for sure." Fox discusses technical measures based around long-term trends, and he sees the Standard & Poor's 500 suprassing 10,000 and the Nasdaq 100 45,000 in "around two years." While he does see garden-variety corrections occuring in that time frame, Fox set S&P 7,000 as a key support level, noting it is possible there's a setback that low, even as the overall trend is upward.