Current Market Risks

Today's markets carry several concerns. Stock valuations in some sectors look stretched by historical standards. Artificial intelligence hype has drawn enormous investment, raising the question of how much is justified and how much is pure speculation. These are the kinds of signals worth watching closely.

Home prices in many cities have far outpaced income growth, helped along by years of low interest rates. Cryptocurrency markets have shown the extreme volatility typical of speculative assets. Whether any of these counts as a true bubble is still hotly debated among professionals.