The stock market bubble will burst in 2027, and the current rotation is a ‘warning of trouble ahead,’ Capital Economics says

Capital Economics is warning that the powerful shift underway in U.S. equities could signal that a long‑running stock market bubble will burst in 2027, ushering in years of upheaval in leadership across major indexes.​ In a Feb. 20 note, John Higgins, chief markets economist at Capital Economics, argues that the recent outperformance of small-cap, value, and defensive stocks relative to large-cap, growth, and cyclical names echoes patterns seen in the late stages of the dotcom boom. “If the aftermath of t ...