Part 12/15:
He also elaborated on banking, noting that regional banks and shadow banking entities currently exhibit signs of stress or resilience that could presage broader financial sector shifts. A potential M&A wave was discussed, alongside deregulation policies that could favor smaller and mid-cap banks and financials.
Risks and Caveats: Correction, Asset Bubbles, and Systemic Flaws
Wilson identified several risks that could trigger a 10-15% correction, including systemic stresses in funding markets, excessive valuations in AI-related industries, and sector-specific bubbles. He cautioned that the bubble in AI and tech might not burst immediately but could see a sharp correction akin to what occurred in 2022-2023.