ECB Economists Warn an AI Stock Correction May Be Unavoidable
4 Articles
4 Articles
The strong growth of US and European stock exchanges, fuelled by investors' enthusiasm for artificial intelligence, could be followed by a significant correction, warns economists of the European Central Bank, who believe that evolution...
Economists at the European Central Bank warn that financial stability in the eurozone is at risk if there is a correction in the high prices of tech stocks. And they believe that correction is coming. They already seemed to be proven right on Tuesday.
The strong growth of US and European stock exchanges, fuelled by investor enthusiasm for artificial intelligence, could be followed by significant correction, warns economists of the European Central Bank.
ECB economists warn an AI stock correction may be unavoidable
Five economists at the European Central Bank published an analysis on Monday arguing that stock market valuations are likely to correct, and that the argument holds whether or not today’s prices are rational. The post, by Malin Andersson, Johannes Breckenfelder, Stefano Corradin, Kalin Nikolov and Maria Antonietta Viola, puts US valuations close to their historical peak on the CAPE ratio, a measure comparing share prices against inflation-adjust…
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