AI Bubble: The Biggest Risk for Investors in 2026 Might Be Rising Interest Rates, Not AI
Australian Financial Review
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Details
- Date Published
- 17 Dec 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 16 Dec 2025, 10:00 pm
Description
Every shareholder may now be focused on the artificial intelligence bubble, but they shouldn’t forget the age-old market danger hiding in plain sight.
Summary
The article suggests that while many are focused on the AI bubble, rising interest rates could pose a significant risk for investors in 2026. The discussion includes insights from AustralianSuper's Chief Investment Officer, Mark Delaney, who notes the importance of stable, rather than euphoric, markets. The content primarily deals with investment risks and market dynamics rather than AI safety per se, providing a financial perspective on AI developments. There is no direct focus on AI safety or governance, limiting its relevance to catastrophic AI risk reduction. However, the mention of AI contextualizes current investor sentiments within a broader economic framework.
Body
MarketsChanticleerPrint articleDec 17, 2025 – 8.37amSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginYou get the feeling that AustralianSuper chief investment officer Mark Delaney, the man who has probably made more money for more Australians than anyone in history, is almost relieved with the tick down in markets that we’ve seen over the past two months.“The fizz has come out of the Coke bottle,” Delaney said on Tuesday after announcing that he will retire next June, following two decades as AusSuper’s money man. “Bull markets generally end with a period of euphoria. What we’ve seen recently doesn’t feel like that. A quiet 12 to 18 months is better than a bubble forming and then markets selling off.”Loading...James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.comSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreChanticleerOpinionSharemarketInflationInterest ratesAIFederal ReserveFetching latest articlesThe untold story of the most lethal Sydney to Hobart race in 26 yearsTony Davis24 new watches to ring out the year (from $170 to $218k)‘YIMBY is a misnomer. They haven’t got backyards’The 5 biggest corporate stuff-ups of 2025James ThomsonLeaders fail because they don’t understand one thing, says this CEOBega CEO reveals his latest health obsession (it’s not only protein)This is the wine young people are drinkingMax AllenWhy everyone is wearing straw hatsA first look at Melbourne’s new $150m luxury hotelKatie Page’s horse sale gets a brush with cultureMichael BaileyBillionaire Rinehart loses bid for helipad at pink-themed HQImmutable late accounts reveal $72m loss despite big revenue growth