Ian Verender

So when you do have such a tightly interlinked model such as this, things can go wrong.

And I mean, when you talk about the concentration, that is a real worry at the moment.

I mean, just from an investment point of view, though, as well, all Australians have got money invested in these companies through your superannuation funds.

And superannuation funds tend to try and spread the money as far and as widely as possible.

The problem is,

So you invest on Wall Street and you invest in, say, somewhere in Asia.

You're investing only in a handful of companies because these companies now dominate Wall Street to such an extent that when you put your money into Wall Street, because a lot of the trading is now computerized, in fact, it's artificial intelligence that's running your investments.

You know, there's what's known as exchange traded funds, and it's all essentially run by a computer.

So in Australia, for instance, if you don't know what to invest in, you can just buy a

a unit in these exchange traded funds and you just get access to Australian stock exchange.

But what you do is your money is invested into the biggest companies, starting with the biggest and going down the list down to the 200th biggest company.

So your money will be in the Commonwealth Bank and BHP overwhelmingly, and then it goes down the list.

If you translate that over to America, you've got basically all your money

that you've invested on Wall Street, locked up in a handful of companies.

You go to Korea, all locked up in a handful of companies.

Taiwan, a couple of chip makers.

So everything is becoming incredibly concentrated.

And the danger there is that if this AI investment boom unwinds, then everybody is going to feel the pain.

that renewables are much cheaper than fossil fuels.

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