The AI bubble has further to run despite the looming crash

E very couple of decades, investors will ask themselves how long can the stock market keep climbing. Is it safe to buy more shares? Is their pension or equity portfolio vulnerable should financial markets, and especially those in the US, come crashing down to earth? When stock markets rise to historically high levels – and beyond the level when normal profits can sustain share prices – a few “experts” typically warn of an impending crash. Many of these experts – City analysts and financial economists – go early with their predictions , only for the market to spend many more years rising. During that time, these experts become discredited and all warnings are ignored. Today, we are witnessing the same. And again those who warned last year and the year before – about the artificial intelligence boom being, yes, artificial, and corporate borrowing by tech companies being too high – can be found muttering about how their moment of vindication will come. Investors are now in that dangerous situation of being hardened to anything that gets in the way of pumping more cash into stock markets. Fears of a tech-driven crash continue to haunt the S&P 500. Photograph: John Angelillo/UPI/Shutterstock The emphasis in this debate is on the New York stock market indexes – the S&P 500 and the tech-heavy Nasdaq . …