AI Euphoria Has a Shelf Life. Don’t Be the Exit Liquidity.

It’s easy to make money when the crowd is running in one direction. It’s harder to know when the music stops.

Markets right now are riding a high: AI, chip stocks, and mega-cap tech have pulled indexes to fresh highs. But under the hood, the signs are classic late-cycle. Volatility is suppressed, breadth is narrowing, and retail sentiment is stretched. We’re in “trigger mode”—buying on alerts, not analysis.

The irony? Even the AI models driving flows are learning from each other. That creates feedback loops—until a small tremor turns into a stampede. As Nvidia’s P/E pushes 70 and forward earnings cool, we’re no longer trading value—we’re trading emotion.

Look at history: in 2021, the market priced in a decade of digitisation in 12 months. It didn’t end well. Now, we’re pricing in a decade of AI-led productivity gains—with the same speed and more leverage.

The pullback won’t be obvious. It never is. But if you’re feeling invincible, you’re probably someone else’s exit liquidity.