B-ordet åter. B som i Bubbla.
As stocks soar, talk of a bubble is making a comeback on Wall Street.
“The ‘B’ word has entered the conversation, and that is a pivotal event. Three decades of experience tells us that when the media begins reporting about ‘Bubble’ risks, you are already in one,” Michael O’Rourke, chief market strategist at Jones Trading, said
He was referring to an article in the Wall Street Journal
https://www.wsj.com/finance/stocks/five-signs-of-a-market-bubble-investors-are-tracking-ddbea944
that spotlighted some signs of bubblelike activity in markets.
The top-performing stocks in the Russell 3000 have racked up huge gains despite those companies reporting scant or nonexistent profits.
The 10 largest stocks in the S&P 500 account for nearly 40% of the entire value of the index, making the index more concentrated than at any time in recent memory.
Meme stocks are making a comeback.
O’Rourke is hardly the only one on Wall Street to suggest that speculative froth appears to be reaching a fever pitch.
Société Générale’s Albert Edwards has taken things one step further, warning that an ”everything bubble” appeared to be taking shape in the U.S. and pointing to stocks and housing as especially exposed.
However, Edwards has been warning about a bubble for some time.
Underscoring Edwards’s sense of concern is the fact that the U.S. hasn’t suffered an economic downturn driven by fluctuations in credit or the business cycle since 2007.
That means nobody under the age of 40 working in finance today has experienced what he would consider a typical recession.
The brief downturn in 2020 was driven by an exogenous shock — the COVID-19 pandemic.
Skeptics of the artificial-intelligence boom certainly have grounds for pessimism. So far, few companies have shown that they can turn their AI offerings into a profit center
History has shown that markets don’t necessarily need to be in a bubble for them to crash hard, Nguyen said.
Few were arguing that stocks were in a bubble when the global financial crisis hit. That didn’t stop the S&P 500 from shedding half its value between October 2007 and March 2009
Joseph Adinolfi MarketWatch 30 July 2025
Michael O’Rourke “In case there are bubble doubts.”
https://englundmacro.blogspot.com/2021/11/michael-orourke-in-case-there-are.html
Albert Edwards, Permabear, Sees More Trouble Ahead
https://englundmacro.blogspot.com/2023/12/albert-edwards-permabear-sees-more.html
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