Valuations, CAPE ratio, and market fragility

A new economic bubble could be forming, and this time, it isn’t real estate. A $20 trillion ticking time bomb could explode if one thing doesn’t go completely right…the AI industry. And the effects could be felt far beyond the stock market, with real estate taking a hit as well. 

The question is: Is the AI bubble close to popping, or are we on the precipice of a new era of economic growth?

Dave researched so you don’t have to, compiling the bullish and bearish arguments for AI. Top tech companies are spending over $500 billion in 2026 alone to make the AI dream come true, but strong counterarguments just might prove that those AI investments won’t pay off. 

If the AI bubble bursts within the next few years, what will it do to the stock market? How will it affect home prices? And what is Dave doing right now with his money to protect against the downsides and position himself for the upsides if the AI bubble does finally burst? This is what could happen next. 

In This Episode We Cover

A $527 billion bet that top tech companies are making on AI (is it worth it?)

What happens to home prices if over-hyped AI causes a stock market correction or crash

Four strong reasons why the AI bubble will (or won’t) burst

A $20 trillion ticking time bomb for the US economy if the AI industry doesn’t hit its targets

Why 99% of real estate investors are wrong about buying near data centers (be very careful)

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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Sign Up for the On the Market Newsletter

Find an Investor-Friendly Agent in Your Area

BiggerPockets Real Estate 1188 - AI Could Take Your Job, But It Can't Take Your Real Estate

Dave's BiggerPockets Profile

Gita Gopinath’s Big Warning: $35 Trillion Wealth Could be Wiped Out?

Grab Dave’s Book, "Start with Strategy"

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