{"id":133557,"date":"2025-10-20T08:50:16","date_gmt":"2025-10-20T08:50:16","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/133557\/"},"modified":"2025-10-20T08:50:16","modified_gmt":"2025-10-20T08:50:16","slug":"ai-bubble-warnings-abound-but-over-caution-can-be-costly-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/133557\/","title":{"rendered":"AI bubble warnings abound, but over-caution can be costly \u2013 The Irish Times"},"content":{"rendered":"

Investors are twitchy about an AI<\/a>-fuelled market bubble.<\/p>\n

\u201cThe AI bubble<\/a> looks real\u201d (New York Times), \u201cWhat could burst the AI bubble?\u201d (RT\u00c9), \u201cThe AI valuation bubble is now getting silly\u201d (Guardian) \u2013 alarming headlines are everywhere right now.<\/p>\n

It\u2019s not just headline writers. More than half of investors in Bank of America\u2019s latest fund manager survey believe AI is in a bubble, saying it is the biggest tail risk facing global markets. Both the International Monetary Fund<\/a> (IMF) and the Bank of England have flagged valuation concerns.<\/p>\n

JPMorgan chief executive Jamie Dimon says \u201csome asset prices\u201d are \u201cin some form of bubble territory\u201d. Stocks are \u201cfairly highly valued\u201d, says Federal Reserve chairman Jerome Powell, echoing Alan Greenspan\u2019s famous warning about \u201cirrational exuberance\u201d during the dotcom bubble.<\/p>\n

However, investors should be cautious about being over-cautious, says Bespoke Investment. It notes Greenspan uttered his warning in 1996, but stocks continued soaring until March 2000.<\/p>\n

This is not an isolated example, with history confirming \u201cstrong bull markets can get much stronger and last much longer than anyone can imagine\u201d.<\/p>\n

[\u00a0The Irish Times view on the AI bubble: Ireland at risk if its burstsOpens in new window<\/a>\u00a0]<\/p>\n

There are always good reasons to be cautious, says Bespoke, but getting out at the top is a fantasy. Investors should \u201cremember that history has been harsher on sideline-sitters\u201d rather than on disciplined investors who resist the temptation to jump in and out of the market.<\/p>\n

That\u2019s echoed by Morgan Stanley. Correction fears are normal, but bull markets \u201care meant to be ridden, not timed\u201d.<\/p>\n

[\u00a0https:\/\/www.irishtimes.com\/your-money\/2025\/10\/11\/openais-network-of-deals-is-propping-up-the-ai-boom\/Opens in new window<\/a>\u00a0]<\/p>\n","protected":false},"excerpt":{"rendered":"Investors are twitchy about an AI-fuelled market bubble. \u201cThe AI bubble looks real\u201d (New York Times), \u201cWhat could…\n","protected":false},"author":2,"featured_media":133558,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,289,290,18,19,16243,17,39085,5129,82],"class_list":{"0":"post-133557","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-eire","12":"tag-ie","13":"tag-international-monetary-fund","14":"tag-ireland","15":"tag-jamie-dimon","16":"tag-jerome-powell","17":"tag-technology"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/133557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=133557"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/133557\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/133558"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=133557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=133557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=133557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}