Recently, looking at the global market trends, it's indeed getting a bit hot. U.S. stocks are hitting new highs, AI-related concept stocks have already soared to the sky, retail investors are flocking in, and analysts are busy raising price targets one after another.

However, behind this feast lie problems. At least ten major risks are brewing, interconnected and amplifying each other. Once triggered, they could cause a chain reaction. Many believe 2026 will be a critical moment to test the resilience of the global financial system.

Let's break it down point by point; the logic is very clear.

**The Cost of the AI Boom**

The current valuation levels of U.S. stocks are approaching the frenzy seen during the 2000 internet bubble. No matter how compelling the story, it ultimately needs to be supported by real profit data.

Where is the problem? If AI investments fail to translate into corresponding profit growth, market confidence will collapse rapidly. Industry estimates suggest that by 2026, the profit growth rate of the top seven tech giants in the U.S. stock index is expected to reach 23%, but other companies only 13%. As long as one leading tech company's AI business underperforms expectations, the entire market could be dragged down.

Even more painfully, the wealthiest 20% of American households hold 70% of financial assets. The rise and fall of the stock market can directly influence their consumption decisions. When the stock market weakens, this group’s shopping power shrinks, and since their consumption accounts for nearly half of U.S. total consumption, an economic downturn becomes highly probable.

**The Vicious Cycle of Employment and Prices**

The infrastructure construction for AI has created numerous jobs over the years: building data centers, manufacturing chips, procuring electrical equipment, and these jobs seem to come continuously. But if the investment boom suddenly shifts, these job opportunities could vanish instantly, putting immediate pressure on the labor market.

On the other hand, both the U.S. and Europe are tightening immigration policies, leading to a continuous decline in the supply of foreign labor. Companies wanting to hire can only raise wages. As wages increase, the prices of goods and services naturally follow suit, reigniting inflationary pressures.