Global Stocks Bubble on AI Hype as Crash Risk Builds Beyond Past Peaks

6 articles · Updated · South China Morning Post · May 16

AI-driven optimism has pushed global stock markets into bubble territory, with share prices rising on expectations the report says are not justified by underlying earnings power.
That inflation matters because stock markets create purchasing power as valuations climb, extending financial risk well beyond paper gains when investors treat elevated prices as real wealth.
The report argues stock values rest largely on belief about future profits, leaving markets especially vulnerable when sentiment outruns what companies can actually earn.
Past crashes eventually gave way to recovery, but the next downturn could exceed previous episodes in scale if today's tech-led exuberance unwinds.

Is the AI stock boom a new economic era or the biggest bubble in history?

What are the first concrete signs that AI is destabilizing both jobs and Wall Street?

With war and soaring oil prices, how long can the market rally defy economic gravity?