AI Mania Fuels Markets, but Concentration Risks Are Rising

Terug

In his latest market update, AXA IM’s Chris Iggo weighs booming equity momentum against mounting structural vulnerabilities.

  • Equity markets are powered by three macro tailwinds: a massive wealth effect from tech-led gains, easy monetary conditions supporting credit growth, and loose fiscal policy focused on defense and technology.

  • The AI-driven rally is highly concentrated: a handful of mega-cap stocks account for a disproportionate share of U.S. equity gains, amplifying valuation risk and market fragility.

  • While credit conditions remain supportive, tight spreads and leveraged private credit signal late-cycle risk—raising questions about how long momentum can override fundamentals.

Could this be another multi-year melt-up—or the last stretch before a correction? The full report explores scenarios and portfolio implications

Registreer of log in om verder te lezen. Investment Officer is een onafhankelijk journalistiek platform voor professionals werkzaam in de Belgische beleggingsindustrie. 

Een abonnement is GRATIS voor professionals die werkzaam zijn bij banken en onafhankelijke vermogensbeheerders.