Until very recently a great deal of irrational exuberance had been driving markets of all sorts.
In the stock market, specifically, investors were chasing momentum like they had only ever done at the height of the Dotcom Mania.
History doesn’t repeat, as they say, but it does rhyme very closely at times.
Now investors are starting to question the veracity of the AI narrative that has been driving the momentum chase.
And a number of AI experts have already weighed in on the topic.
With the economy beginning to markedly weaken at the same time, the record weighting of the tech sector could prove problematic for investors who have now fully priced in an AI-driven productivity renaissance.