Today’s Chart of the Day from Bank of America is more of a “buyer beware” to those oversaturated in AI. It's important to understand the risks that other new technology experienced. Quite simply, there was a boom and then a bust. Notably, in the Telecom Bubble from 1992 to 1999 the market went up 403% vs. the current AI boom 417%. The past is no predictor, but understanding the past can prepare us for possible risks in the future.
Side note: The chart reminds us of the Shale Revolution, where our increased efficiency to frack for oil was THE catalyst to turn the market out of the Great Recession and without it the downturn may have lasted much longer.