Blain’s Morning Porridge Nov 7th 2025: AI – Noise, Signal, Brace. “Unprecedented market shocks occur with monotonous regularity.” Is the AI bubble bursting? Who will be the survivorsand losers? Or is it more fundamental – US AI firms talk of spending billions, but what is China is doing AI better and cheaper? If China wins the AI race, then it will confirm more than just the waning of the American century. It willfundamentally shift valuations. That clashing klaxon of noise is the rising perception the AIBubble is about to pop. Suddenly, everyone is negative - creating immediate “guilt by association” contagion risks across global markets, which we all know are massively overweighted in favour of AI linked investments. All the predictable parallels with previous financial crashes are being drawn. The extremely high concentration risk is a massive concern. When the US stock market is up over 40% solely on whatever value AI might create in future revenues, and the underlying economy is looking, at best, mixed – it suggests speculation has got way ahead of common sense… Take a second to list the reasons you should be worried – theywill probably include:Go to www.morningporridge.com for full access to site and article.

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