Albert Edwards, the Global Strategist at Société Générale, has raised a red flag on the current state of the U.S. equity market. He believes that the market, largely driven by tech and AI, is in the throes of a dangerous bubble that could have dire consequences.

Market Growth Masks Deeper Risks

Edwards, known for his bearish outlook, drew parallels between the current market situation and the dot-com bubble of the late 1990s. In an interview with Fortune, he pointed to the soaring valuations of tech companies, some trading at over 30 times forward earnings, as a clear sign of a bubble.

The analyst also highlighted a key difference in the current scenario: the economy’s heavy dependence on the AI theme, not just for business investments but also for consumer spending, which is being driven more than usual by the top quintile of wealthy Americans. ...