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The ‘Perils Of Euphoric Expectations’
The biggest complaint I have with the A.I. "bubble" narrative is also the simplest: The run-up in tech shares this year hasn't succeeded in getting the S&P back to record highs, and the aggregate index valuation isn't anywhere near dot-com bubble levels.
It's hard for me to imagine that "peak A.I." will occur without new highs on tech-dominated, cap-weighted benchmarks. If you look at the Nasdaq Comp, a sizable share of constituents still trade miles below their two-year highs. And the A.I.
That list from the top of mind folks was on target. Number three was the chief cause of the dot.com bubble. Watch out, this one could take a while. Remember, the bigger the balloon, the bigger the pop.