Albert Edwards, the outspoken Global Strategist at Société Générale—a figure who even refers to himself as a “perma bear”—is certain that the current U.S. equity market, driven largely by high-flying tech and AI, is experiencing a dangerous bubble. (Société Générale, to be clear, does not hold the view that U.S. stocks or AI stocks are…
Analysts might argue you can’t have a bubble without a burst. With markets nearing correction territory, some investors might be wondering if the time to sell is nigh—but hedge fund founder Ray Dalio believes there’s no need to panic just yet. The founder of Bridgewater Associates agrees with the general consensus that stocks are in…
Goldman Sachs tackled the “most important question for the U.S. equity market outlook” on Monday: whether the market is “correctly valuing the benefits from AI.” The answer is a qualified yes, a denial that company valuations are at “bubble levels,” and a finding that the market is, shall we say, excessively optimistic. The U.S. equity…
U.S. stocks are ticking higher and approaching another record. The S&P 500 rose 0.2% early Wednesday and neared the all-time high it set a couple weeks ago. The Dow Jones Industrial Average added 127 points after setting its own record the day before, while the Nasdaq composite climbed 0.3%. Technology stocks swung back upward. Advanced…
A top market analyst’s warning in late October about a looming “prisoner’s dilemma” and an “AI wobble” in the stock market became chillingly prescient this week as even bullish earnings from Palantir failed to stop a dramatic tech-led selloff. The remarks came from Tony Yoseloff, managing partner and chief investment officer at Davidson Kempner Capital…
Sure, maybe AI enthusiasm is creating a stock market bubble. But if the Federal Reserve is set to continue slashing rates, one might be tempted to ask: so what? In other words, even with valuations elevated, the old maxim of “don’t fight the Fed” may prove to be prudent advice in the near term. When…
Bank of America Research has issued a fresh warning for equity investors: the S&P 500, now hovering near historic highs, is demonstrating elevated risk levels with 60% of the firm’s proprietary “bear market signposts” flashing red—just shy of the point that has historically heralded a market peak. The bank’s S&P 500 Relative Value Cheat Sheet,…
If AI and crypto are not bubbles, we could be in big trouble. What if the trillions of dollars placed on those bets turn out to be good investments? The disruption will be epic, and terrible. A lot of speculative manias are just fun for a while and then the last in lose their shirts,…
Walking up to The Plaza Hotel’s east side entrance, Andrew Ross Sorkin is in his element. Just seconds after his arrival, he dives into what the storied hotel was like a century ago, sending me scrambling to get my recorder out. “In 1929, people would come here and it was insane — every business guy…
Maybe you’ve had this experience lately: You’re riding high, feeling good about yet another record high in stocks, and then someone pops up on TV to kill the vibe. “It’s an AI bubble,” they say. “It’s like 1999.” This actually happened to me last week (before President Trump’s new tariff threat sent stocks tumbling on…