The Zhitong Finance App learned that David Rosenberg said that the US stock market is becoming more and more like a bubble, and its valuation, leverage, and investor positions are at extreme levels he has never seen before in his 40 years in the business. The founder of Toronto-based Rosenberg Research & Associates Inc., believes that the current bull market's dependence on the progress of artificial intelligence (AI) is far higher than the stock market's dependence on the technology industry on the eve of the Internet bubble. He said that he has been buying US Treasury bonds and foreign stocks in his portfolio, and that the US is the “center of technological prosperity” for which investors are paying too much.
“I've been in the business for 40 years, and I can't remember when I saw so many divisions, extremes, and imbalances — not only in the marketplace, but also in the economy,” he said at Grant's Annual Fall Conference in New York. “If you don't want me to call it a bubble, I wouldn't call it that. But what I'm seeing now is something I've never seen before.”
Rosenberg is known for his partial stance. He was the chief economist in North America at Merrill Lynch & Co. (Merrill Lynch & Co.) and rose to fame after warning about the US housing bubble before the 2008 financial crisis. After that, he worked at Gluskin Sheff for over a decade before leaving his job to start his own research company.
In addition to warning of a further rise in the market's reliance on AI, Rosenberg also pointed out that there are weaknesses in the fundamentals of the US economy. In particular, he pointed out that consumers are increasingly dependent on further increases in the stock market to fund their lifestyle.
“I'm really worried about the social impact of the next bear market,” Rosenberg said. He cites those who retire early and depend on their portfolios to make ends meet, pointing out that they will face difficult choices. “What will happen to these people? Will they run to Walmart to find a job as a cashier? But it turns out that even this job has been replaced by robots?”