Mastodawn

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> The current value of all corporate stock is close to $80 trillion, more than 2.5 times GDP.

If PE ratios fell back to their long-term average of just under 20, it would destroy close to $40 trillion in stock wealth, an average of almost $300,000 per household.

If the PE fell back to its long-term average, and the after-tax profit share of GDP also fell back toward their level of a quarter-century ago, then the loss of wealth would be even larger.
https://cepr.net/publications/ai-bubble-monitor/#june82026
#DeanBaker #PriceToEarnings #BubbleHistory

The AI Bubble Monitor

Is there an AI bubble? Some indicators point to one — and when bubbles burst, there can be massive shocks in housing and job markets that last for years.

CEPR

AIagent.at 🤖 AI News Jul 17, 2025

According to #TorstenSlok, the chief economist at Apollo Global Management, the current #AI-driven #marketbubble is more stretched than the #dotcom frenzy of the late 1990s. Slok compares the 12-month forward #pricetoearnings (P/E) #ratios of the top ten companies in the S&P 500 against the rest of the index, showing that the #PEratios of the top ten companies are #evenhigher than they were at the peak of the dot-com bubble. https://gizmodo.com/wall-streets-ai-bubble-is-worse-than-the-1999-dot-com-bubble-warns-a-top-economist-2000630487?AIagents.at #AIagent #AI #ML #NLP #LLM #GenAI

Wall Street’s AI Bubble Is Worse Than the 1999 Dot-com Bubble, Warns a Top Economist

A chief economist at investment giant Apollo says the top ten AI stocks are more detached from reality than the tech titans of the 1990s were. His chart is a stark warning that history is about to repeat itself.

Gizmodo