A Wall Street Firm Modeled Out an AI Crash: S&P 500 Down 30%, $20 Trillion Gone. But Here's What Happens Next

TS Lombard models an AI investment boom collapse scenario where the S&P 500 falls 30% and $20 trillion in market value is erased, with tech stocks down 40%. However, the firm advises staying invested in diversified global stocks rather than timing the market, expecting only a mild recession similar to 1990 or 2001, with potential recovery by early 2028.