From boom to bust: the AI equity rally in its final phase

For the past three years, our Markets team has been more optimistic than most about the AI-driven rally in global equities. That view has been borne out by events. Now they believe the rally has entered its final phase and that a sharp downturn will follow.  On this week's The Weekly Briefing, Chief Markets Economist Jonas Goltermann explains why we think the correction is coming in 2027, what to expect before the plunge and whether the Fed will play a role in the rally's demise. Also on the show, Climate and Commodities Economist Hamad Hussain discusses why our long-standing forecast that gold prices would retreat from their record highs is playing out, and why prices have further to fall from here.Related content:Drop-In: AI's global shockwaves – Macro and market implicationsAsset Allocation Outlook: The AI equity boom reaching its final inningshttps://www.capitaleconomics.com/publications/asset-allocation-outlook/ai-equity-boom-reaching-its-final-inningsCommodities Outlook: Beyond Hormuz – the path back to an oil gluthttps://www.capitaleconomics.com/publications/commodities-outlook/beyond-hormuz-path-back-oil-glut