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AI Bubble Risks Worst S&P 500 Crash Since 2008, Strategist Says
Joachim Klement says hyperscaler spending and rising borrowing costs could end the AI trade, with the S&P 500 possibly falling 36% from current levels.
Bank Banmore Leprom's strategy is likely to burst the artificial intelligence bubble in two years, and American equities will drop 36% by the end of 2027, amid increased financing costs and liquidity pressures, in anticipation that is contrary to the optimism of most of its counterparts.