BofA – Year Ahead 2026: The Bubble Era

Summary

The main theme of the report concerns the analysis of the state and prospects of the global equity market in 2026, with a particular focus on the phenomenon of market bubbles.

The report discusses whether artificial intelligence (AI) is a bubble, providing arguments for and against this view. A new bubble risk indicator from BofA is introduced, which assesses price instability and could have warned of 7 out of 8 major bubbles since the 1920s. Risks associated with leveraged ETFs and private assets are discussed, as well as the need for strategic planning for investors. Regional differences are analyzed, such as fiscal spending in Europe and risks related to the Asian AI market.

Region: Global

Published: January 2026

Author(s): BofA

Language: English

Tech drivers: AI Quantum Computing

Social drivers: Pandemics Sustainability and ethics

Geopolitical drivers: Economic conditions Political instability and conflicts Regulatory changes Supply chains disruption Workforce availability

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