Posted 2/12/2024, 4:44:00 PM
Echoes of Past Manias: Are We Headed For Another Stock Market Crash?
- The stock market looks similar to before the dot-com crash and 2008 financial crisis, with "speculative mania" and a "raging bull market"
- There is hype around AI stocks, like the "Magnificent Seven", similar to the Nifty Fifty era stocks in the 1960s/70s
- AI stocks are trading at very high valuations that are likely unsustainable
- Geopolitical risks, recession risk, and potential Fed policy disappointment are being ignored
- Rosenberg has warned that a recession few see coming could cause a 20% drop in the S&P 500