No Relief Until 2027—Then Stocks Face Reset | Peter Berezin

The AI-driven capital expenditure boom currently sustains economic growth, yet it requires an estimated $10 trillion in annual revenue to justify massive investments in data centers. While stock markets reach record highs, a K-shaped economy leaves median households struggling with stagnant disposable income and rising costs, fueling widespread consumer despondency. High interest rates, driven by intense AI-related investment demand rather than just energy shocks, continue to pressure the economy. Although oil prices remain elevated due to geopolitical instability and high shipping costs, the long-term economic outlook faces further headwinds from declining global fertility rates and falling educational achievement. Peter Berezin, Chief Global Strategist at BCA Research, warns that if AI productivity gains fail to materialize, the resulting market correction could be severe, especially given the limited capacity for further fiscal or monetary policy intervention.