Economics and International Affairs Blog

Thursday, July 30, 2026

Everyday Investors Are Over the Mag Seven and Into New AI Darlings
https://www.wsj.com/finance/stocks/everyday-investors-are-over-the-mag-seven-and-into-new-ai-darlings-a112ea2b
Once the Magnificent Seven’s most enthusiastic fans, they are looking elsewhere for the next superstar tech stocks.

Dividends are the best way to protect yourself from the AI bubble
https://www.telegraph.co.uk/business/2026/07/17/dividends-best-way-to-protect-yourself-from-ai-bubble/
Equity income-focused strategies offer a steady alternative to the US and its surging economy.

A.I. Companies Are Recruiting Electricians and Carpenters by the Thousands
https://www.nytimes.com/2026/07/29/business/economy/data-center-electricians-training.html
The future of artificial intelligence depends on finding more skilled humans for some very physical jobs.

The Rise of Million-Dollar Companies with Just One Employee
https://www.wsj.com/tech/ai/the-rise-of-million-dollar-companies-with-just-one-employee-f36a77c1
AI tools make it easier for founders to get started alone, and many stay that way as they grow.

The AI Threat to Financial Stability by Brian Judge (Research Director of the Program on Finance and Democracy at the University of California, Berkeley)
https://www.project-syndicate.org/commentary/ai-bubble-threatens-financial-stability-by-brian-judge-2026-07
In episodes like the railroad boom and the dot-com bubble, creditors and shareholders were wiped out, because investment in a genuinely transformative technology outpaced any plausible near-term return. With the US financial system and asset markets having become a one-way bet on AI, such an outcome today could be catastrophic.

Balancing Innovation and Inflation in Portfolios
https://www.gspublishing.com/content/research/en/reports/2026/07/10/ce510cb7-570e-477c-932b-8b706e7188d6.pdf

BIS Report: AI and the global economy: implications for central banks
https://www.bis.org/publ/bisbull130.pdf

Related:
Structural shifts demand a new central banking mindset by Vivekanand Jayakumar, The Hill, July 21, 2026
https://thehill.com/opinion/finance/5979598-monetary-policy-paradigm-shifts/)
The AI bubble could be worse than the dot-com bust by Vivekanand Jayakumar, The Hill - 06/16/26
https://thehill.com/opinion/finance/5925202-tech-bubble-ai-driven-growth/

Trump economy at 18 months is a tale of shocks, resilience, and signs of stalled progress
https://www.reuters.com/world/us/trump-economy-18-months-is-tale-shocks-resilience-signs-stalled-progress-2026-07-27/
The economy has stalled in many of the areas where Trump said that mass deportations of undocumented people and higher import taxes would trigger a boom, with the U.S.-Israeli war against Iran intensifying some key risks.

A Historic Shift is Underway in Asia
https://www.nytimes.com/2026/07/27/opinion/asia-military-security-china-allies.html

Iran War Forces Energy Buyers to ‘Unshackle’ From Global Markets
https://www.nytimes.com/2026/07/27/business/natural-gas-lng-asia-exposure.html
Developing Asian nations, scarred by Middle East supply shocks, are working to scale back their reliance on imported fuels, including liquefied natural gas.

Related:
Can Renewables Industrialize Africa?
https://www.foreignaffairs.com/africa/can-renewables-industrialize-africa
The Iran War Is Driving the Continent Toward Chinese-Backed Green Energy.

Why economic surveys have lost their relevance
https://www.ft.com/content/1c559e9c-83b8-486c-812f-cb431e6970ce
Distorted by partisan passion and rising inequality, they are a reflection of popular frustrations — not overall growth.

Do We Really Feel This Lousy About the Economy, or Is a Key Survey Broken?
https://www.wsj.com/economy/consumers/do-we-really-feel-this-lousy-about-the-economy-or-is-a-key-survey-broken-06c8c9ca
The University of Michigan is pushing back and defending its widely tracked consumer sentiment gauge.