AI Euphoria, Fed Signals and Oil Politics: David Roche warns markets may be ignoring bigger risks

Veteran strategist David Roche has warned that global markets may be overlooking significant risks, calling the over one trillion dollars pouring into AI investments a bubble that will not be rewarded by commensurate profits. He noted the US Federal Reserve's commitment to fighting inflation supports dollar confidence and that lower oil prices following a US-Iran understanding should ease inflationary pressures. However, Roche criticised the broader agreement as strategically favourable to Iran and cautioned that a correction in AI spending could have far-reaching consequences for markets and the broader economy.