Keep Calm and Debt On - AI Borrows, Gold Gets Loud

Keep calm and debt on

The macro and market imbalances that emerged from 1998 onward are not yet clearly visible today. By most measures, the current AI-driven surge resembles the early tech boom of 1997–1998 more than the bubble years of 1999–2000. While this doesn’t ensure that returns on capital will ultimately justify today’s valuations, it does imply that, absent major shocks or constraint, the AI investment cycle could still have further to run. (GS)