
Concerns over a potential economic downturn are intensifying as 63% of global investors anticipate a slowdown within the next year. This sentiment reflects a significant shift, with 25% of institutional investors turning pessimistic in March, marking the second-largest change in 31 years, second only to the crisis in 2020. The cooling investor sentiment could lead to stagnation in investment and consumption. Additionally, the U.S. stock market has seen a sharp decline, with the S&P 500 dropping by up to 10% in recent weeks. This downturn raises fears of a recession, as historical trends indicate that a continued decline of at least 5% within the next five months typically signals an economic recession. The current situation is drawing parallels to the dot-com crash of 25 years ago, with AI-driven market behavior reminiscent of that era, as $22 trillion has been added to the S&P 500 since 2022 amid stretched valuations and emerging market vulnerabilities.
25 years after the dot-com bubble burst, AI is fueling a similar frenzy—$22T added to the S&P 500 since 2022, but as valuations stretch and cracks emerge, investors may once again be chasing the right technology at the wrong time. Source: Bloomberg https://t.co/On7ZUA5WpX
Vacklande AI-rally väcker oro för upprepning av it-bubblan, skriver Bloomberg • Tog Nasdaq 15 år att återhämta sig efter kraschen https://t.co/7Io5L6tdJu
A stumbling stock market is raising the specter of a reckoning like the dot-com crash 25 years ago https://t.co/D1kW9NEhzS via @markets

