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Story summary
- Economist Ruchir Sharma warns the AI surge may resemble a bubble poised to burst in 2026.
- He cites overinvestment, overvaluation, over-ownership, and over-leverage as signals of a potential collapse.
- Rising interest rates could trigger the downturn by raising borrowing costs and lowering valuations of high-growth firms.
- Sharma notes inflation remains high and the Federal Reserve may struggle to meet targets, a backdrop that argues for quality stocks as safer bets.
