Search Results for: Dot com

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Echoes of Dot-Com? Is AI tech leading us into another crash?

Wall Street is soaring on artificial intelligence optimism—but underneath the record-breaking highs lies a growing sense of déjà vu. From stretched valuations and speculative fervour to market concentration reminiscent of the dot-com era, financial analysts and institutional veterans are asking: are we already inside a tech bubble? Valuations Defying Gravity At the heart of the …

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‘The fool doth think he is wise, but the wise man knows himself to be a fool.’

William Shakespeare 1564 – 1616 William Shakespeare was an English playwright, poet and actor. He is widely regarded as the greatest writer in the English language and the world’s pre-eminent dramatist.  He is often called England’s national poet and the ‘Bard of Avon’ (or simply ‘the Bard’). Defintion of the word ‘Bard’. A bard is a poet, especially …

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Artificially Inflated Artificial Intelligence Stocks – The FOMO Effect?

The meteoric rise of artificial intelligence (AI) stocks has captivated investors worldwide, but beneath the headlines lies a growing concern: are these valuations built on genuine fundamentals, or are they the product of collective psychology? Increasingly, analysts point to the possibility that the fear of missing out (FOMO) is a potential driver of this rally, …

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U.S. AI vs China AI – the difference

China’s AI industry has indeed cultivated a reputation for ‘doing more with less’, while the U.S. has poured vast sums into AI development, raising concerns about overinvestment and inflated valuations. The contrast lies not only in the scale of funding but also in the efficiency and strategic focus of each country’s approach. The U.S. Approach: …

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Nvidia Q3 results were very strong – but does the AI bubble reside elsewhere – such as with the debt driven AI data centre roll out – and crossover company deals?

Nvidia’s Q3 results show strength, but the real risk of an AI bubble may lie in the debt-fuelled data centre boom and the circular crossover deals between tech giants. Nvidia’s latest quarterly earnings were nothing short of spectacular. Revenue surged to $57 billion, up 62% year-on-year, with net income climbing to nearly $32 billion. The …

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Pichai Warns of AI Bubble: Google Not Immune to Market Correction

Google CEO Sundar Pichai has warned that no company, including his own, will be immune if the current AI bubble bursts. He described the boom as both extraordinary and irrational, urging caution amid soaring valuations and investment hype In a recent interview, Google’s chief executive Sundar Pichai offered a sobering perspective on the rapid expansion …

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AI hype collides with economic reality, and signs suggest the mania may be slowing

Artificial Intelligence: The Hype, The Hangover, and What Comes Next… For the past two years, artificial intelligence has dominated headlines, boardrooms, and investor portfolios. From generative models that write poetry to chips that promise to revolutionise data processing, AI has been hailed as the engine of a new industrial age. But as 2025 unfolds, the …

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Markets on a Hair Trigger: Trump’s Tariff Whiplash and the AI Bubble That Won’t Pop

U.S. stock markets are behaving like a mood ring in a thunderstorm—volatile, reactive, and oddly sentimental. One moment, President Trump threatens a ‘massive increase’ in tariffs on Chinese imports, and nearly $2 trillion in market value evaporates. The next, he posts that: ‘all will be fine‘, and futures rebound overnight. It’s not just policy—it’s theatre, …

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AI Crash! Correction or pullback? Something is coming…

Influential figures and institutions are sounding the AI alarm—or at least raising eyebrows—about the frothy valuations and speculative fervour surrounding artificial intelligence. Who’s Warning About the AI Bubble? 🏛️ Bank of England – Financial Policy Committee 🏦 Jerome Powell – Chair, U.S. Federal Reserve 🧮 Lisa Shalett – Chief Investment Officer, Morgan Stanley Wealth Management …

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Bulls and Bubbles: The stock market euphoria

In the world of stock markets, few phenomena are as captivating—or as perilous—as bull runs and speculative bubbles. Though often conflated, these two forces represent distinct psychological and financial dynamics that shape investor behaviour and market outcomes. Bull Markets: Confidence with Momentum A bull market is defined by sustained price increases across major indices. Typically …

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When will it be time to worry about the AI bubble?

Key Signals of an AI Bubble Valuations detached from fundamentals When companies with minimal revenue or unclear business models are trading at sky-high valuations purely because they’re ‘AI-adjacent’, surely it’s time to take note. Overconcentration in a few stocks If market gains are disproportionately driven by a handful of AI giants (think Nvidia, Microsoft and …

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Are We in an AI ‘Super Cycle’? Some investors say Yes—and it could last two decades?

The term ‘AI super cycle’ is gaining traction among top investors, and for good reason. According to recent commentary from leading venture capitalists, we may be entering a prolonged period of exponential growth in artificial intelligence—one that could reshape industries, economies, and even the nature of work itself. Unlike previous tech booms, this cycle isn’t …

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Buffett Indicator surges past 200% – raising alarm bells on market valuation

The so-called ‘Buffett Indicator’—a stock market valuation metric championed by Warren Buffett—has surged past 200%, reigniting concerns that equities may be dangerously overvalued. The ratio, which compares the total market capitalisation of U.S. stocks to the country’s gross domestic product (GDP), now sits well above the threshold Buffett once described as “playing with fire”. Historically, …

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Are we looking at an AI house of cards? Bubble worries emerge after Oracle blowout figures

There’s growing concern that parts of the AI boom—especially the infrastructure and monetisation frenzy—might be built on shaky foundations. The term ‘AI house of cards’ is being used to describe deals like Oracle’s multiyear agreement with OpenAI, which has committed to buying $300 billion in computing power over five years starting in 2027. That’s on …

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Databases to Dominance: Oracle’s AI Boom and Ellison’s Billionaire Ascent

Oracle Corporation has just staged one of the most dramatic rallies in tech history—catapulting itself into the elite club of near-trillion-dollar companies and reshaping the billionaire leaderboard in the process. Founded in 1977 by Larry Ellison, Oracle began as a modest database software firm. Its first major boom came in the late 1990s, riding the …

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The bubble that thinks: Sam Altman’s AI paradox

Sam Altman, CEO of OpenAI, has never been shy about bold predictions. But his latest remarks strike a curious chord reportedly saying: ‘Yes, we’re in an AI bubble’. ‘And yes, AI is the most important thing to happen in a very long time’. It’s a paradox that feels almost ‘Altmanesque’—equal parts caution and conviction, like …

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Warning issued for stock market bubble

Howard Marks, a widely respected value investor and co-founder of Oaktree Capital Management, recently issued a memo highlighting several cautionary signs of a potential bubble in the stock market. Marks, who famously foresaw the dot-com bubble, pointed out that today’s high market valuations could lead to poor returns over the long term or even sharp …

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Fed cuts interest rate by 0.25% – indicates fewer cuts in 2025

The Federal Open Market Committee (FOMC) cut its borrowing rate to a range of 4.25% – 4.50%, mirroring its December 2022 level. The Fed indicated that it probably would only lower twice more in 2025, according to the closely watched ‘dot plot’ matrix of individual members’ future rate expectations While the decision itself was closely …

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What evidence is there that the U.S. stock market is overvalued right now?

High Price-to-Earnings (P/E) ratio The P/E ratio of the market is a common measure of valuation. Currently, the P/E ratio is significantly higher than historical averages, indicating that stocks are priced much higher relative to their earnings. Rapid price increases without corresponding earnings growth When stock prices rise rapidly without a corresponding increase in earnings, …

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Japan, India and U.S. stock markets continue to hit new record highs!

Asia-Pacific markets witnessed highs on Tuesday 8th July 2024, mirroring the gains on Wall Street where the S&P 500 and the Nasdaq Composite ended at record highs. India’s Nifty 50 index also hit an all-time high of 24401.2 Investors are anticipating the forthcoming U.S. consumer price index release to discern the Federal Reserve’s direction on interest rates. Pundits …

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Is AI driving a market bubble or is there so much more yet to come?

As tech giant Nvidia soars on hype around artificial intelligence (AI), and as global stock indexes claim record highs, debate has grown about whether the stock market has entered a ‘bubble.’ An AI bubble of boom We are reminded of the dotcom bubble where investment was rife in anything tech – so, are we now potentially facing a …

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The Fed in December 2023 saw rate cuts likely in 2024, but that path is uncertain

Federal Reserve officials in December concluded that interest rate cuts are likely in 2024, though they appeared to provide little in the way of when that might occur, according to minutes from the meeting released Wednesday 3rd January 2024. FOMC meeting minutes The rate-setting Federal Open Market Committee (FOMC) agreed to keep its rate steady in a …

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Central bank predictions were wrong, why should we take any notice now?

Central banks, 18 months ago got it fundamentally wrong and they got it wrong on many other occasions too. So why take any notice? The Fed and other central banks insisted that inflation would be ‘transitory’ – it wasn’t. It reached 7%. That’s 5% above the target of 2%. Along with the misdiagnosis on prices, Fed …

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