Blog: AI Bubble - Are we there yet?
Bubble conditions are here. But risk sentiment is positive.
All bubble markets are overvalued, but not all overvalued markets are bubbles. Bubbles become cultural phenomenon. They permeate our everyday existence. Everywhere we go we see people talking about the markets and whatever innovation is driving the bubble. This is outside of the investment field itself. I mean, we're always talking about markets. But as I've mentioned before, in 1999 I saw that sports bars were watching CNBC on TV instead of sports. That meant we were in a Tech Bubble, not just an overvalued market.
So where are we now? After the Tech Bubble I developed a Bubble checklist comprised of five characteristics I saw in common across known bubbles of the past. In early 2024 I went through this list to see if we were in an AI bubble. The conclusion was "not yet." But I think it's time to revisit the list.