'We now live in a world of rolling bubbles,' says Macquarie Group

• Global equity markets are incredibly concentrated, with the top 10 US stocks representing about 45% of market capitalization.
• The world now operates with abundant capital, not constrained capital, which means anything abundant cannot be priced in the traditional sense.
• AI is not a single bubble but a series of 'rolling bubbles' across various tech sub-sectors (software, chips, applications like robotics, biotech, quantum computing), where capital shifts from one winning theme to the next.
• Emerging markets are behaving similarly to developed markets, with no clear geographical differentiation in market dynamics.
• Central banks are behind the curve on understanding the structural disinflationary environment, which is punctuated by inflationary spikes caused by policy reactions and geopolitical events.
• The recommended investment strategy is thematic stock picking, adopting a venture capitalist approach to identify themes that will perform over the next 2-4 years, as winning sectors will continue to attract capital while others sunset.

Viktor Shvets of Macquarie Group argues that global equity markets are highly concentrated due to abundant capital, leading to a 'new normal' of rolling AI bubbles rather than traditional market busts. He suggests that old investment paradigms are no longer applicable and recommends thematic stock picking with a venture capitalist approach to identify winning sectors.