ABC
There is a lot of anxious talk in share markets about whether we’re in the midst of an AI bubble.
We are, of course. It seems impossible for the profits from AI to be enough for a decent return on the huge amounts being invested in it.
But no-one knows when the bubble will deflate, and investors don’t want to miss the last bit of froth, so they hang on, hoping to time their exit perfectly, which is impossible.
In a way, asset price bubbles have a purpose: they provide the money for a new burst of technology with the opportunity for a group of optimists to sacrifice their wealth for the benefit of the rest of us.
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