Wall Street Strategist Who Called Dot-Com Crash Says Stocks Are in a Bubble Driven by Fed
SocGen's Albert Edwards says the artificial-intelligence craze is getting out of hand. The artificial-intelligence craze and a "loosey goosey" Federal Reserve monetary policy have helped to spawn another bubble in U.S. stocks, according to a strategist who anticipated the dot-com crash of 2000.According to Albert Edwards, a global strategist at Société Générale known for his bearish takes on markets and the economy, the stock-market rally over the last five months has all the hallmarks of a bubble, including tacit help from the Fed and a convenient narrative: that the "artificial intelligence revolution" will drive a boom in corporate earnings.In the past, the S&P 500 has closely tracked analysts' optimism, Edwards said but more recently, the relationship appears to be heading in the wrong direction.As stock-market bulls wait around for AI to drive earnings into the stratosphere, "those of us who lived through the late 1990s TMT bubble have heard it all before and roll our eyes skyward
