Australia's largest pension fund reduces its global stock allocation: concerns about AI cooling down.

John Nolan, investment strategy chief of AustralianSuper, the largest pension fund in Australia, revealed that the fund is planning to reduce the allocation of global stocks next year, as there are signs that the artificial intelligence boom in the US stock market may be cooling down. The fund pointed out that, on one hand, the valuation of large US tech companies is already high compared to historical levels; on the other hand, leverage used for artificial intelligence investments is rapidly expanding, while fundraising through mergers and acquisitions, venture capital, and public listings is also accelerating. "I have noticed multiple factors accumulating, which means we will reduce the allocation of public stocks at some point next year," Nolan said. "This is the inevitable result of the artificial intelligence cycle entering a mature stage and the interaction of the two major trends of the Fed's tightening policy shift in 2027."