Société Générale’s Albert Edwards, the often bearish strategist

 In a Thursday client note challenged every pillar of the bull case behind the artificial-intelligence boom, which has helped drive major U.S. stock gauges to record highs.

He started with the notion that the market can safely rotate away from Big-Tech leadership without provoking a downturn in the S&P 500.

History shows that extremely concentrated markets tend to precede crashes, as occurred during the run-up to the 2007- 2008 global financial crisis and the 2022 bear market. 

Edwards sees no reason why this time would be any different.

Edwards also thinks Wall Street economists have underestimated the likelihood that the U.S. economy slides into recession.

MarketWatch 18 July 2024

https://www.marketwatch.com/story/are-we-on-the-brink-of-another-nasdaq-crash-1c1f6813

Albert Edwards, Permabear, Sees More Trouble Ahead

https://englundmacro.blogspot.com/2023/12/albert-edwards-permabear-sees-more.html

Hussman: our most reliable valuation measure hit the steepest extreme in U.S. financial history. 

A weeklong decline in megacap technology stocks broadened Thursday to encompass smaller firms and financial shares as signs of economic weakness overwhelmed optimism over rate cuts.

Stock Market Today: Dow, S&P Live Updates for July 18 - Bloomberg