Bankless Defensive Investing for an AI Bubble | Ruchir Sharma's Hedge Rules
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Nov 19, 2025 
Ruchir Sharma, investor and author known for his insights on global macro trends, explores the intertwining of U.S. dominance and AI's impact on growth. He discusses why the U.S.'s exceptionalism may be peaking, pointing toward a rebound in international markets. Ruchir emphasizes the importance of diversifying investments with exposure to quality stocks and emerging markets like India and China. He also warns about the potential risks of an AI bubble and gives a measured take on Bitcoin as a hedge amidst evolving economic landscapes.
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Markets Give AI The Benefit Of The Doubt
- The calm bond market and dollar resilience reflect an implicit bet that AI will boost productivity. That belief gives fiscal and policy leeway that may prove fragile if AI disappoints.
Bubbles Need A Catalyst, Often Tight Money
- A bubble is a great story gone too far and requires a catalyst to pop. Ruchir Sharma sees AI froth now but says only tighter monetary conditions (higher CPI, Fed pivot) reliably puncture bubbles.
Moral Hazard Has Inflated Household Equity Bets
- A perception of government downside protection fuels household risk-taking and equity concentration. Households now hold over 50% in equities, rising because investors expect bailouts and free upside.
