The Earnings Bubble Beckons: A Cautionary Tale of Capital's Collision Course Goldman Sachs' chief global equity strategist, Peter Oppenheimer, has added hard numbers to his earnings bubble warning, tying the risk of an AI driven earnings bubble to a specific mechanism: the collision course between government borrowing and private capital spending.
This collision is not just theoretical; it's playing out in real time. Capital expenditures among AA rated technology issuers surged 65% year over year in the second quarter, while record breaking $2. 3 trillion in U.
S. investment grade issuance this year has AI related issuers accounting for a quarter of that supply.