AI and tech stocks at risk of correction on doubts about sector's profitability

Since the start of the US-Iran war three months ago, the ASX 200 has dropped 6 per cent, while global markets have been consistently hitting record highs. Surging demand for high-growth tech and AI stocks is driving the surge across US, Japanese and South Korean markets — something the Australian market lacks. Moomoo Australia's chief executive Michael McCarthy believes there is a real risk about the profitability of many of these AI companies, which could lead to significant falls on Wall Street in the months ahead. He expects Australian mining and infrastructure stocks to benefit from the "HALO (heavy assets, low obsolescence) trade" in the coming months — and for local investors to favour high-dividend stocks as a result of the Albanese government's proposed changes to capital gains tax (CGT) discount. Hosted by finance presenter David Chau. #ABCBusiness Subscribe: http://ab.co/1svxLVE Note: In most cases, our captions are auto-generated. #ABCNEWS #ABCNEWSAustralia