The chief market strategist at a billion-dollar asset management firm says a major AI bull market risk is being overstated, noting that skeptics are relying on a tired narrative that does not match the policy environment.
In a new post on X, Wellington-Altus’s top strategist, James Thorne, says warnings about liquidity evaporating are surfacing again as AI stocks mount a recovery.
According to Thorne, the narrative that liquidity is drying up amid the trillions in AI spending is just plain lazy.
“Liquidity is the fuel of every bull market; the real question is never if it will fade, but when the tap is turned off. The pundit class will keep pretending that merely raising the possibility of liquidity drying up is deep insight, when in reality it is the oldest, laziest trope in the book. In every major technology wave, from AI to crypto, the strawman goes like this: ‘What if the capital spigot suddenly shuts?’ This is not profound. Yes, the cycle will eventually end, just not now. ”
He adds that liquidity risk must be tied to policy, tax and balance-sheet capacity, not sentiment. He says the current cycle has clear structural support.
“Under the BBBA (One Big Beautiful Act) framework, a 100% tax deduction for CapEx through Jan 1, 2031, effectively hardwires a multiyear incentive to overbuild productive assets, including AI infrastructure, until that window closes. That is the working assumption: the liquidity impulse tied to CapEx remains structurally supported into 2030, unless the legal or macro backdrop changes. If those facts change, the view changes; but until then, the default is continuation, not sudden cardiac arrest in capital markets.”
Thorne argues that analysts and commentators invoking liquidity fears without identifying a policy trigger are offering anxiety, not risk management.
“So get used to the noise: ‘What if the money stops?’ is going to be the go‑to scare line every time AI or crypto prints a new high. The serious question is: what is the policy, tax, and balance‑sheet architecture that would actually cause it to stop, and on what timetable?”
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