Bubble Trouble vs Tokenomics

Goldman Sachs analysis suggests current equity markets are not in a bubble compared to historical precedents, supported by strong earnings and low relative valuations. The report highlights 'Agentic AI' as a primary catalyst for future margin expansion and token consumption growth.

Key Takeaways

• 1.Current equity market performance and valuations do not yet rival the extremes seen in the 1999/2000 dot-com bubble or the 1989 Japanese financial bubble.
• 2.Agentic AI is projected to drive a 24x increase in token consumption by 2030, leading to a positive gross margin inflection for hyperscalers within 3-12 months.
• 3.Massive capital reserves exist in money market funds ($7.75 trillion) that could be reallocated into equities if interest rate fears subside.

Table of Contents

• 1) You Are Here?
• 2) Bubbles?
• 3) Earnings
• 4) Macro
• 5) AI Tokenomics

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