The featured report, authored by Jeremy Grantham and Edward Chancellor of GMO, examines whether today’s AI boom represents a durable economic shift, an extreme asset bubble, or both.
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U.S. equities, led by AI-linked firms, trade at historically elevated valuations, with multiple metrics exceeding dot-com era peaks.
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AI exhibits classic features of past technology manias: compelling narratives, easy capital, heavy overinvestment, and suspended valuation discipline.
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While AI may ultimately transform productivity, near-term returns are vulnerable to capital misallocation and sentiment reversal.
How should investors position portfolios amid unprecedented promise—and equally unprecedented risk? Explore the full report for deeper historical context and portfolio implications.
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