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Not all stock market bubbles are created equal. Some have a kernel or truth that enables a change in technology, finance or another economic segment to accelerate dramatically.
Although the inflated prices cause some economic distortion, they also dramatically accelerate whatever breakthrough change is occurring.
One such bubble is that around AI unfolding in the US. This capital value charge will enable innovation leaders to lift R&D and dominate the new technology via M&A:
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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