Overview

• The Bank of England’s Financial Stability Report warns of a potential sharp market correction, citing stretched equity pricing concentrated in AI-linked technology stocks.
• Valuations based on past earnings have climbed to levels last seen during the 2000 dotcom era, with rising index concentration leaving markets vulnerable if AI optimism wanes.
• The BoE flags broader risks that could trigger a selloff, including heavy government borrowing, questions over Federal Reserve independence, and geopolitical tensions.
• Goldman Sachs’ Peter Oppenheimer says behavior and pricing rhyme with past bubbles yet concludes the market has not crossed into bubble territory, noting stronger profitability and balance sheets than in 2000.
• Goldman CEO David Solomon warns of a likely drawdown within two years, while Jeff Bezos and Sam Altman acknowledge overexcitement and potential losses as forecasts still point to nearly $3 trillion of AI infrastructure spending from 2025 to 2028.