IAUM - Bubble Up: The Everything Everywhere Bubble

2024-04-22 08:35:00 ET

Summary

• Investors face a challenging landscape with fiscal dominance pushing bond yields and inflation, while geopolitical turmoil disrupts markets.
• Rising interest rates aim to curb inflation but can hurt stock valuations and bond prices.
• In my opinion, we are within the euphoria phase of an AI bubble, and it remains unclear as to whether it will be overtaken by a gradual descent of profit taking, eventually leading to a waterfall decline, or if the exciting and phenomenal developments will allow to continue to propel valuations higher.

Every bubble has two components: an underlying trend that prevails in reality and a misconception relating to that trend. - George Soros

In a speculative market, what counts is imagination and not analysis. - Benjamin Graham

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