The stock market has surged to record highs, seemingly detached from global risks, according to University of Michigan professor Erik Gordon. He argues investors are living in a “parallel reality” where AI hype overshadows war, inflation, and mass layoffs.
S&P 500 Surging Despite War
Gordon cited Allbirds’ pivot to AI infrastructure, which sent shares soaring nearly 600% in one day, as emblematic of the frenzy. Skeptics like Michael Burry and Jeremy Grantham warn of an impending bubble, while optimists such as Ross Gerber and Kevin O’Leary believe AI is driving real productivity gains. The S&P 500 has climbed over 10% despite mounting economic pressures.
Read the original article on Business Insider
