“The artificial intelligence (AI) investment cycle continues to thrive, caught between circular financing concerns and warnings of an impending bubble. While there are some similarities with the infamous dotcom boom-and-bust cycle, we also observe significant differences. China remains stuck in a balance-sheet recession, but Chinese policymakers recognise that a managed and sustainable equity bull market constitutes an effective way to reflate household balance sheets hurt by the housing downturn. If Western governments continue to undermine foreign investors’ trust in the integrity of their capital markets, the value of gold and other ‘out-of-system’ assets will likely continue to rise.”
Morten W. Larsen
