AI Hype Hurts Emerging Markets, BTG Billionaire Esteves Says
- BTG founder says AI is a liquidity drag for developing markets
- Emerging-market equities trade near cheapest-ever versus US
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The relentless rally in artificial-intelligence stocks is helping drain money from capital markets across developing nations, according to Andre Esteves, the Brazilian billionaire founder of Banco BTG Pactual SA.
“When you go back 30 years in history, the concept of emerging markets was high growth, wealth creation, new frontiers of business,” Esteves, who’s BTG’s chairman, said at an event in Santiago, Chile. “That description fits well for Silicon Valley.”