Markets don’t collapse because technology fails they collapse because expectations get priced as certainty. When everyone believes profits are inevitable and imminent, risk doesn’t vanish; it piles up. Any deviation from perfection then triggers a sharp repricing. Activate your brain cells!

The dot-com bubble is a clear reminder. The internet was real and revolutionary, but valuations assumed instant profitability and endless growth. I was working at a bank at the time, supporting the trading desk, and the atmosphere was one of absolute confidence. Everyone expected quick wins. When reality caught up, prices didn’t adjust slowly, they collapsed. That’s not theory for me; it’s déjà vu.

AI today shows similar dynamics. The technology will matter, but parts of the market are priced for flawless execution. In that setup, even “good” results can disappoint. The real risk isn’t whether AI works, it’s how much optimism is already embedded in the price.