Ruchir Sharma on AI Bubble Risks, Opportunities in India

The speaker warns that an AI bubble collapse would trigger a global recession if rising interest rates pierce the U.S. market, which currently absorbs 70% of global equity flows and drives consumer spending through wealth effects. While retail investors sustain the bubble with reflexive buying and access to technology, the speaker identifies undervalued quality stocks in Europe, Japan, and the U.S. as superior long-term holdings alongside the Swiss Franc as a defensive currency. The analysis concludes that divergent regional performances, particularly China's structural failures and India's limited near-term tech adoption, underscore the necessity of hedging against a concentrated U.S. exposure.