The article discusses the potential for a new record high in the S&P 500 index before an anticipated burst of the AI bubble, similar to the dotcom crash in the early 2000s. According to Morgan Stanley’s chief U.S. equity strategist Mike Wilson, the market could see a short-term rally driven by the AI hype, but he warns that the bubble is likely to burst, leading to a significant downturn. Wilson compares the current AI frenzy to the dotcom era, when excessive speculation and overvaluation ultimately led to a market crash. He advises investors to be cautious and not get caught up in the AI hype, as the bubble’s burst could result in substantial losses. The strategist suggests focusing on high-quality companies with strong fundamentals and avoiding overvalued AI-related stocks.