Posted 3/23/2024, 8:31:00 AM
Gundlach Warns of AI Bubble Burst Ahead; Forecasts Economic Turmoil Like Dot-Com Crash
- Jeffrey Gundlach compared the current AI stock boom to the 1999 dot-com bubble and predicted economic troubles ahead
- He warned that stock valuations are stretched, with a handful of giant tech stocks propping up indexes
- Gundlach foresees "inflationary economic slowdown" or stagflation given rising oil prices and potential Fed policy mistakes
- Billionaire investors Bill Gross and John Hussman also warned that stock valuations have reached extreme, bubble-like levels
- Hussman said current market resembles volatile peak before 1929 crash and 2022 near-bear market