AI Versus 'The 1990s': Goldman Says Positioning For Wider Spreads, Higher Vol Makes Sense

Tl;dr: No bubble: investment spend is less broad based, no deteriorating profitability, balance sheets strong, leverage low, savings stable, deficit is manageable, credit spreads still tight, equity vol has not reset higher.

The continued appreciation of AI-related equities is again prompting questions about whether the US equity market is in a “bubble”, as it was in the late 1990s.