For months we have been hearing the fear of a bubble. Sectors like artificial intelligence or AI, cryptocurrencies or meme stocks They appear to be the most accusatory sectors. But experts point out that there are little bubbles flooding the market with the intention of generating a destabilization. Although not finished concreterse, according to Allie Canal on Yahoo Finance.
Ed Yardeni, market veteran and president of Yardeni Researchcalls it «a bubble of fear of bubbles,» arguing that the «bubble at all» never materialized.
Instead, he observes dozens of minimanias in speculative assets, meme trading, and now data center stocks that come and go without disrupting the broader market.
It is a fragmented exuberance. Instead of a general boom, investors move in a scattering of small frenzies. Take your pick: AI stocks, record gold, SPAC 2.0, and leverage-driven trading.
Even the Bitcoinwhich has fallen after rising near $120,000 but still hovers around $110,000, underscores an exuberant and strangely stable market.
And as Yardeni reminds us, we’ve seen this movie before.
The narrative of the «bubble of everything» took off for the first time with Janet Yellen and gained momentum during the stimulus of the 2020-2021 pandemic eraa period that also triggered strong but brief bursts of speculation. (Think: dumb money, GameStop-Ameme stock fever).
Those excesses eventually deflated, but none triggered a financial calamity or recession. The same thing could happen again: bubbles burst, but history shows that the burst often leaves fertile ground for the next rally.
The outlook is not at all discouraging this time either. Stocks are at all-time highs. He PIB real of the US is also at an all-time high. And, with the exception of the two-month pandemic lockdown in early 2020, the U.S. has not experienced an official recession in 16 years.
Goldman Sachs Gr He took a similar tone in a new report that asks whether AI has entered bubble territory.
Goldman’s strategists Eric Sheridan and Kash Ranganwarned that the development of AI has become «circular», with big tech companies buying and investing in each other.
«Circularity makes me nervous,» Sheridan said. «This is another example of how the current period rhymes with the dotcom bubble.»
But a rhyme is not the same as a repetition. Sheridan and Rangan emphasized that we are not in 1999 with today’s major tech companies. Chip manufacturers such as NVIDIA and hyper-scaling companies like Microsoft, Meta (Facebook), Alphabet-A y Amazon They generate massive cash flow, return capital to shareholders, and still trade well below the extremes of the dot-com era.
“AI may not be a bubble yet,” Sheridan said.
If Yardeni is right, that could be the point: Little bubbles always form and eventually burst.
But in a market strong enough for them to float, a few blowups are not a problem. They are proof that everything is still afloat.