AI is a bubble, and figuring out exactly when it's going to burst is really hard: GMO's Ben Inker

Market Outlook - The US market is perceived as expensive and heavily reliant on the AI sector, raising concerns about its sustainability [2][3] - Anticipation of significant IPOs in the near future could lead to a substantial influx of supply, potentially overwhelming the market [2][5] IPO Concerns - The expected IPOs from major companies like SpaceX and OpenAI could introduce hundreds of billions of dollars in supply, which may negatively impact market stability [3][6] - Historical trends indicate that large bursts of IPOs can lead to market downturns, as seen in 2021 and 2000 [8] Investment Strategy - There is a preference for international investments over US equities, particularly in Europe and Japan, where there are perceived opportunities for strong returns [4][5] - The dollar is considered overvalued, further supporting the shift towards international markets [4] Market Dynamics - The market's inelasticity suggests that large capital flows from IPOs can lead to significant corrections, as past events have demonstrated [8][9] - The critical issue is not the timing of the IPOs but rather when existing shareholders are allowed to sell their shares, which can create additional market pressure [9]