Baby bubble
"The Biggest Picture: AI for now (is) a 'baby bubble,'" BofA strategist Michael Hartnett wrote.
There are "bubbles in right things (e.g. internet) & wrong things (e.g. housing) always started by easy money, always ended by rate hikes," Hartnett said.
With the "new AI mania + 5% inflation, 3% unemployment, 7% budget deficits in ‘23" the "biggest 'pain trade' next 12 months is fed funds rate at 6% not 3%."