Speaking ahead of the IMF’s annual meetings, chief Kristalina Georgieva advised investors to “buckle up,” stating that “uncertainty is the new normal.” She highlighted “worrying signs” for the global economy, pointing to soaring stock valuations driven by AI euphoria, the full impact of US tariffs, and record gold prices as evidence of rising investor anxiety. “History tells us this sentiment can turn abruptly,” Georgieva cautioned.

Her comments echoed a recent warning from the Bank of England. In its latest meeting minutes, the central bank said the risk of a “sharp market correction” had increased, noting that valuations for AI-focused tech firms appear stretched. The Bank cited disappointing progress in AI adoption or increased competition as potential triggers for a re-evaluation of high future earnings expectations.

These warnings align with recent cautionary statements from figures such as OpenAI’s Sam Altman and US Federal Reserve Chair Jerome Powell.

Joost van Leenders, a senior investment strategist at Van Lanschot Kempen, noted that while the timing of the warnings may be a coincidence, they fit a broader pattern of growing scepticism. He observed that while valuations for major US tech firms are not yet “excessive” based on forward price-to-earnings (P/E) ratios, other signals point towards a bubble.

“When you look at… the fact that some of these companies are financing each other and buying each other’s stocks, I think those are also signals of a bubble,” Van Leenders said. He suggested the market may be in the third of five bubble stages, adding that while the trend could continue, “how far is obviously the big question.”