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Last night, on ABC’s 7.30 news report with Michael Rowland, I discussed whether surging investment in artificial intelligence (AI) is pushing large technology companies to unsustainable valuations. I noted that investors often become highly enthusiastic when new technologies emerge that are believed to reshape the world, but history shows this can inflate expectations. In the case of AI, the scale of spending by tech hyperscalers is immense, and to justify it they would need extraordinary levels of revenue.

Watch the full segment here: ABC News – Are AI investors causing tech companies to be overvalued?

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by Roger Montgomery Posted in Insightful Insights, Market commentary, On the Internet, Technology & Telecommunications, TV Appearances.

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Recently, the BBC interviewed Sundar Pichai, the CEO of Alphabet, Google’s parent. With all the claims the artificial intelligence (AI) boom is a bubble – something I have noted cannot be known until after the event – I wonder whether the BBC was motivated to go to the source. 

Describing the surge in AI funding as a remarkable period, yet one marked by certain unrealistic expectations, Pichai warned viewers of BBC News that no business would escape unscathed if the AI boom collapses. Continue…

by Roger Montgomery Posted in Global markets, Market commentary, Technology & Telecommunications.

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On this episode of Over the Money Fence, I joined Nicola and Di to reflect on what really shaped markets in 2025, cutting through the noise around artificial intelligence (AI), technology stocks, gold, Bitcoin, inflation and interest rates. I shared my outlook for 2026, including the risks of an AI-led bubble, the growing role of alternative strategies like private credit, and why diversification and quality investing remain essential. We also tackled the most common listener questions and discussed simple, practical steps to help people head into the new year feeling clear, calm and confident. Continue…

by Roger Montgomery Posted in Global markets, Investing Education, Market commentary, Podcast Channel.

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From South Sea to AI: Artificial Intelligence (AI) companies seem to be asking investors the question: Just how long can growth be built on the question of future returns – and a productivity revolution – that are by no means guaranteed?

The South Sea Bubble of 1720 remains the archetype of a financial mania driven by exotic new ‘tech’, the promise of monopoly returns, and limitless public imagination.

At first, the idea of comparing the South Sea bubble to an AI boom 305 years later seemed far-fetched. AI is not, for example, a Ponzi scheme being promoted by those who fail or refuse to publish financials or forecasts of how profits will be made. Continue…

by Roger Montgomery Posted in Investing Education, Market commentary, Technology & Telecommunications.

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2025 has been an eventful year, with some strong returns – but what comes next? I joined Sean Aylmer from Fear and Greed for their Summer Series to break down the forces that shaped markets this year. Looking ahead to 2026, I explain why investors should expect higher volatility, limited future gains given today’s stretched valuations, and why rebalancing portfolios into alternative offerings that are uncorrelated to markets should be considered. 

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by Roger Montgomery Posted in Economics, Global markets, Market commentary, Podcast Channel.

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I joined Niav Owens on ABC Newcastle Mornings yesterday to discuss why cash is making a comeback – despite the rise of digital payments – and why it still plays an important role in budgeting, privacy, and accessibility. We also touched on the trillions being poured into artificial intelligence and whether those investments can truly deliver the returns investors expect.

You can listen to the full episode from 14:13 here: ABC Newcastle Mornings.  Continue…

by Roger Montgomery Posted in Economics, Global markets, Radio.

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In this week’s video insight, I look at the dynamics behind major technology booms – from steam trains and commercial flight to the internet and now artificial intelligence (AI). In Part 1 of this two-part series, I outline the typical signs of a bubble: including soaring share prices, circular deals between companies, rising sales on credit, and financial engineering that makes growth look stronger than it truly is. We’re seeing many of these patterns in today’s AI boom. In Part 2, I’ll explain how these booms have typically unwound. Continue…

by Roger Montgomery Posted in Technology & Telecommunications, Video Insights.

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While most currently consider bubbles a dangerous precondition for a stock market crash, they can also be better navigated by appreciating they’re a necessary step on the road to humanity’s advancement.

As I have noted previously, there’s a myriad of definitions for asset bubbles, but most fall into two camps: those that measure overvaluation and those that observe the behaviours and conditions that typically give rise to it.
This article was first published in The Australian on 20 December 2025. Continue…

by Roger Montgomery Posted in In the Press, Investing Education, Market commentary, Technology & Telecommunications.

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I joined Paul Turton on ABC Newcastle Mornings today to discuss the broader economic backdrop, including why interest rates are likely to remain steady for now, how household spending and cost pressures are shaping the outlook, and why global sharemarkets are being driven less by local conditions and more by international themes such as investment in artificial intelligence (AI), with long-term returns ultimately depending on earnings and business fundamentals.

Tune in from 37:54 to hear the full segment: ABC Newcastle Mornings. Continue…

by Roger Montgomery Posted in Radio.

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In my latest article for Nabtrade, I explore why investors are rarely able to identify a bubble until after it has burst, and why the signals today suggest it may be prudent to prepare for a shift in 2026. Diversification and rebalancing is becoming increasingly important as market conditions become more turbulent. 

You can read the full article here: Bubbles create a shadow – time to move out from the shade. Continue…

by Roger Montgomery Posted in On the Internet.

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