Is your portfolio built to survive the AI disruption wave?

Artificial intelligence is not a distant threat.

It is already reshaping entire industries — compressing margins, automating workflows, and making previously defensible business models newly vulnerable.

For investors, the question is no longer whether AI will disrupt.

It is which businesses in your portfolio are exposed.

At the same time, a separate story is unfolding in global markets — one that many U.S.-focused investors are missing entirely.

Not All Businesses Face the Same AI Risk

When evaluating a company’s vulnerability to AI disruption, two factors matter most:

Heavy asset base​
Businesses anchored in physical resources — infrastructure, real estate, equipment — are structurally harder to disrupt. AI can optimize logistics, but it cannot create a warehouse.

Low obsolescence risk​
Companies whose advantage comes from brand trust, regulatory barriers, or physical scarcity are often harder to replace than those relying mainly on knowledge work.

A regional utility with an irreplaceable grid.
A manufacturer with 40 years of precision tooling expertise.

These businesses do not become obsolete simply because a language model gets smarter.

The Valuation Gap Few Investors Are Watching

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A meaningful pricing gap has opened between U.S. and international equities.

U.S. equities (MSCI): ~22x P/E
​International equities (MSCI): ~13x P/E

Investors are paying nearly 70% more for similar businesses simply because they are based in the United States.

That valuation gap matters.

Historically, valuation gaps this wide have not remained permanent.

The better question may be:

Is your portfolio positioned to benefit from that divergence — or concentrated in the most expensive corner of global markets?

What This Means for Your Portfolio

The investors best positioned for the next decade may not be the ones who simply chased the last bull market.

They may be the ones who asked better questions sooner:

Which businesses in my portfolio are genuinely defensible against AI?
Where am I paying a premium I cannot justify?
What am I missing by only looking in one direction?

Global diversification is not about being pessimistic on America.

It is about recognizing that opportunity — and risk — does not stop at the border.

Questions about your portfolio’s global exposure?

Mark Struthers, CFA, CFP®, CEPA, RMA®

For current clients looking for a meeting:

This commentary is provided for general information purposes only, should not be construed as investment, tax, or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable, but is not guaranteed.