One warning sign that a bubble is close to bursting is high and rising gross equity issuance; that was a feature, for example, during the dotcom bubble and the “non-profitable tech” bubble in 2020-21. Issuance during the ongoing AI boom has yet to reach the extremes of previous stock market rallies, but several blockbuster IPOs that are on the cards for this year mean it is likely soon to ramp up much further.
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