“A bubble happens when prices rise way above what something is actually worth.” 💸

Market Sentiment & Valuation - The market is debating whether an AI-fueled bubble exists, with some valuations appearing stretched due to hype and speculation [1] - Some argue the rally is justified by solid earnings and upbeat guidance from companies, suggesting fair valuations [2] - Macro tailwinds, such as potential Federal Reserve easing and cooling inflation, are providing a boost to stocks [3] Potential Risks & Red Flags - Concerns exist that the AI rally may be outpacing actual earnings, with some unprofitable tech companies experiencing significant gains [3] - The rally remains concentrated in a few mega-cap tech companies, indicating limited broader market participation [4] - Strategists are watching for classic signs of a bubble, where promise outweighs the ability to deliver [3][4]