GoKawiilCapital Economics: AI Boom Shows Classic Signs of a Late-Stage Market Bubble
Capital Economics economist James Reilly analyzed eight market indicators — including surging equity and debt issuance and extreme concentration of market value in a handful of tech stocks — and found most near levels historically seen just before major market crashes. Reilly concluded the data resembles a 'late-stage bubble' comparable to the run-up before the dot-com crash. The warning comes as the Federal Reserve weighs whether to raise interest rates to cool the AI-driven market euphoria.