Recently, economist Daron Acemoglu and Professor of Economics at the Massachusetts Institute of Technology claimed that Artificial Intelligence (AI) can only do 5% of jobs. Bloomberg: “You’re not going to get an economic revolution”. Hence, he fears a “massive crash” in a bubble. I agree. Before his prediction, we had several doomsday predictions by the IMF...
A mid July 2024 Axios Markets article (see below) suggests that we are getting closer to the burst of the Artificial Intelligence (AI) bubble. That burst will be similar to the burst of the dot.com bubble in early 2000. Also see my related 2023 blog Dot.com bubble vs AI hype. The burst of the “imminent” AI bubble will cause a parting between B2B and B2C companies....
Recently, Belgian newspaper De Standaard asked an intriguing question: Is a bubble scenario looming for artificial intelligence? Their question came as a surprise. Probably, because AI and robotics already play an important role in automotive. The dot.com bubble felt (very) different. Source: my June 12 blog Please see my SWOT analysis on artificial intelligence, as...
Axios Markets: 2021 saw more inflows to stocks than the past 12 years combinedBy: Dion RabouinDate: 12 April 2021 "Money flowing to stocks globally in just the past five months ($576 billion) has exceeded the inflow seen over the prior 12 years by well over $100 billion, according to data from Bank of America Global Research.Why it matters: It's further...
Axios Markets title: The stock market may be getting too hotBy: Dion RabouinDate 8 April 2021"There are a growing number of signs the bull market in equities is overheating, with indicators of investor complacency and risk-seeking reaching the highest levels since 2007 and 1999.Why it matters: Those periods of extreme euphoria were followed by market...
In 1996, former Fed Chairman Alan Greenspan coined the term "irrational exuberance". He warned for overvalued asset prices, following long periods of low inflation and lower risk premiums. Today, the stock markets are widely seen as overvalued. Each bit of bad news (eg, Covid-19, economy, unemployment) translates in higher values on stock...
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