{"id":37412,"date":"2025-11-02T11:01:23","date_gmt":"2025-11-02T11:01:23","guid":{"rendered":"https:\/\/agooka.com\/news\/usa\/markets-guru-liz-ann-sonders-says-the-ai-boom-isnt-dot-com-bubble-2-0-but-disappointment-could-roil-the-economy\/"},"modified":"2025-11-02T11:01:23","modified_gmt":"2025-11-02T11:01:23","slug":"markets-guru-liz-ann-sonders-says-the-ai-boom-isnt-dot-com-bubble-2-0-but-disappointment-could-roil-the-economy","status":"publish","type":"post","link":"https:\/\/agooka.com\/news\/usa\/markets-guru-liz-ann-sonders-says-the-ai-boom-isnt-dot-com-bubble-2-0-but-disappointment-could-roil-the-economy\/","title":{"rendered":"Markets guru Liz Ann Sonders says the AI boom isn&#8217;t dot-com bubble 2.0 &mdash; but disappointment could roil the economy"},"content":{"rendered":"<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/6904acbac007ca8c2737fe79?format=jpeg\" alt=\"Liz Ann Sonders\"\/><figcaption>Liz Ann Sonders is Charles Schwab&#039;s chief investment strategist.<\/p>\n<p>Charles Schwab<\/p>\n<\/figcaption><\/figure>\n<ul>\n<li>The AI boom is more grounded than the dot-com bubble, but still poses risks, Liz Ann Sonders said.<\/li>\n<li>Charles Schwab&#039;s chief investment strategist says today&#039;s tech leaders are much stronger.<\/li>\n<li>But investor disappointment could hit an economy that&#039;s already showing signs of strain, she said.<\/li>\n<\/ul>\n<p>The AI boom is far more robust than the dot-com bubble, but there&#039;s still a risk it disappoints investors and sends shockwaves through markets and the economy, Liz Ann Sonders says.<\/p>\n<p>Charles Schwab&#039;s chief investment strategist told Business Insider that &quot;extreme enthusiasm&quot; about innovation and circular deals between tech companies reminded her of the internet bubble 25 years ago.<\/p>\n<p>But she said a key difference is that many dot-com companies were small and loss-making, whereas today&#039;s AI leaders are massive companies with strong balance sheets and fast-growing revenues and profits, she said.<\/p>\n<p>For example, Nvidia became the first company to notch a $5 trillion market capitalization this week, but that valuation has some support in the form of the microchip giant&#039;s $47 billion revenue and $26 billion net income for the quarter ended July 27.<\/p>\n<p>Sonders said the immense concentration of investor wealth in Big Tech companies means there&#039;s &quot;more exposure to the equity market than ever before.&quot; She said that if a bear market takes hold, it &quot;could have feeders into the economy&quot; as consumers might balk at their portfolio losses and cut back on spending, curbing economic growth.<\/p>\n<p>The Wall Street veteran said there&#039;s a danger that AI companies fail to deliver on their bullish growth forecasts, which have driven the stock market to record highs.<\/p>\n<p>&quot;That&#039;s the ultimate risk \u2014 that you&#039;ve set the expectations bar too high,&quot; she said. In that situation, even a slight miss could trigger market behavior that&#039;s a &quot;little more egregious,&quot; she added.<\/p>\n<p>Sonders said that speculation in more niche areas, such as meme stocks, drones, and quantum computing, made her a &quot;little less uncomfortable&quot; about investor exuberance, as &quot;you could have cracks in that armor show up&quot; without tanking the wider stock market.<\/p>\n<p>She added that gold&#039;s surge to record highs of over $4,000 this month was an &quot;area where the enthusiasm pendulum swung maybe a bit too far,&quot; and the moves were &quot;more about FOMO than fundamentally driven.&quot;<\/p>\n<p>Sonders said it&#039;s tricky to gauge the health of the US economy right now as the government shutdown has disrupted some data releases: &quot;We&#039;re all flying this plane a little blind right now.&quot;<\/p>\n<p>But she said that economic gauges in recent months have shown rising pressure on lower-income consumers and a softening labor market, which could erode growth.<\/p>\n<p>&quot;It&#039;s not screaming &#039;recession is imminent,&#039;&quot; Sonders said, but investors should &quot;be mindful&quot; of a weakening jobs backdrop.<\/p>\n<p>Read the original article on Business Insider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Liz Ann Sonders is Charles Schwab&#039;s chief investment strategist. Charles Schwab The AI boom is more grounded than the dot-com bubble, but still poses risks, Liz Ann Sonders said. Charles Schwab&#039;s chief investment strategist says today&#039;s tech leaders are much stronger. But investor disappointment could hit an economy that&#039;s already showing signs of strain, she [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":37413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-37412","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usa"},"_links":{"self":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/37412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/comments?post=37412"}],"version-history":[{"count":0,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/37412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media\/37413"}],"wp:attachment":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media?parent=37412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/categories?post=37412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/tags?post=37412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}