I guess markets are efficient most of the time, but stock market bubbles do exist and are common even, which goes against the efficient market hypothesis. I believe it is a debated topic in economics and I don’t know what the current consensus regarding it is.
My own experience points to the direction that there is an AI bubble, as cases like Lovable indicate that investors are overvaluing companies. I cannot explain their valuation, other than that investors bet on things they do not understand. As I mentioned, anecdotally this seems to often be the case.
I guess markets are efficient most of the time, but stock market bubbles do exist and are common even, which goes against the efficient market hypothesis. I believe it is a debated topic in economics and I don’t know what the current consensus regarding it is.
My own experience points to the direction that there is an AI bubble, as cases like Lovable indicate that investors are overvaluing companies. I cannot explain their valuation, other than that investors bet on things they do not understand. As I mentioned, anecdotally this seems to often be the case.