Dump growth stocks as 'illusion of tumbling inflation' and AI hype start to fade, investing legend Rob Arnott says

• Investors should dump growth stocks and buy value stocks as inflation will rebound, Rob Arnott said.
• Meanwhile, hype around the "AI miracle" is also starting to fade, he told Bloomberg TV.
• The legendary investor also warned a recession is likely if the Fed keeps rates high.

Investors should turn to value equities as a pick-up in inflation will make growth stocks a bad call, Research Affiliates founder Rob Arnott said.