SAO PAULO—As global markets grapple with volatility, the head of the World Economic Forum has issued a stark warning about potential economic bubbles that could destabilize the world economy. Borge Brende, president of the Geneva-based organization, highlighted three areas of concern: artificial intelligence, cryptocurrencies, and soaring global debt levels. His comments, delivered amid a sharp selloff in technology stocks, underscore growing anxieties among economic leaders about overvaluations in key sectors.
Brende’s remarks came during an interview with Reuters in Sao Paulo, where he emphasized the need for vigilance. “We should watch out for bubbles,” Brende said, pointing to the rapid rise in AI valuations as a prime example. He noted that while AI holds immense promise, the hype surrounding it may have inflated market expectations beyond sustainable levels….
