Stocks Surge on AI Hype Risks Dot-Com-Like Bubble That May Lead to Recession If Burst
• This stock market rally has similarities to the 1990s dot-com bubble, according to market veteran Ed Yardeni.
• Stocks like Nvidia are surging on AI hype, much like Cisco rose on internet hype in the late 1990s.
• Bursting bubbles can lead to recessions. The Fed aims to avoid recession but risks fueling more "irrational exuberance."
• There's lots of cash on the sidelines ready to pour into markets if the Fed signals a change.
• If the Fed declares victory on inflation and cuts rates, it could fuel a bubble. A burst bubble could then cause a recession.