Temasek Warns AI Trade Reversal Is Market’s Biggest Risk

Temasek's framing is notable less for the warning itself than for its source: a large, long-horizon state investor publicly naming AI concentration as the market's top risk, while explicitly declining to call the timing. That combination — high conviction on the vulnerability, low conviction on the trigger — is what makes the 2027 reference and the two cited catalysts (safety-driven regulation and weak returns on AI capex) worth tracking as observable signposts rather than forecasts. The open question is whether other institutional allocators echo this framing, which would matter more for positioning than the call itself.