BIS Quarterly Review (December 2025): volatility challenges risk-takingThe AI-fuelled stock rally is prompting the question “Isn’t this too high?”
On December 8, 2025 the BIS published its Quarterly Review. It says the risk-on mood that prevailed for much of the review period faced mounting challenges from spells of market volatility, concerns about an economic slowdown and unease around stretched equity valuations. The AI-related boom in equity prices shaped market developments, and valuations of risk assets remained at historically elevated levels.The BIS, an international organisation, has summed up what happened in the world’s financial markets. Shares of AI-related companies rose sharply, and the mood in markets was bold. But worries about a slowing economy and fears that shares have become too expensive caused some big ups and downs in share prices.
November 2022This review
M7 (seven big tech firms)about 20%nearly 35%
Other tech stocksabout 10%about 15%
- ○Applies: The rise in AI-related share prices continued
- ○Applies: Towards the end, worries about high valuations appeared
- ○Applies: The market for companies’ borrowing was little swayed by the swings in shares
- ×Does not apply: The price of gold fell