‘Price bubble’ in A.I. stocks will wreck rally, economist David Rosenberg predicts (2 min read)
Economist David Rosenberg warns that the AI stock surge has become a distraction from recession risks and resembles the dot-com bubble in the 1990s. Stocks like Nvidia, Alphabet, Microsoft, and Palantir have seen significant gains but he believes they are overextended. He notes that the S&P 500 breadth measures are the worst since 1999, with only a few mega-cap tech stocks driving the market. Meanwhile, sectors like banks, consumer discretionary, and transports show similar trading patterns as the previous recession.