Panmure Strategist Forecasts 36% S&P 500 Crash by 2027 as AI Spending Strains Cash Flows
Panmure Liberum head of market strategy Joachim Klement warns that the artificial intelligence trade may collapse as early as 2027, potentially triggering the worst S&P 500 crash since the 2008 financial crisis. He projects a 36% decline in the index, driven by depleted free cash flows and rising debt costs for major technology firms. While acknowledging the risk may be premature, Klement advises investors to prepare contingency plans and shift to defensive sectors if the market breaches key technical support levels.