The bankruptcy protection filing by U.S. auto parts firm First Brands - and mysterious disappearance of $2.3 billion - is intensifying speculation that all is not rosy in the private credit garden. Could this be where bubble risks lie, rather than public markets?Is it different this time? Perhaps - interest rates are falling, not rising; there's no household or business credit bubble; leverage is generally low. Yet the surge in prices, tech valuations, and market concentration is eye-watering. The AI frenzy ...

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We are now three years into the AI boom, and understandably, many investors are asking: is this a bubble? My view is, not yet. There are pockets of froth in the market that warrant caution, but the core AI trade is not in bubble territory.Bezos: A “Good Bubble”At a conference in Italy last weekend, Jeff Bezos captured the moment well. If AI is in a bubble, he said, it is a “good bubble.”“This is kind of an industrial bubble as opposed to financial bubbles,” Bezos explained. “When people get very excited as ...

The stock market may look like it's on a high, but according to Goldman Sachs (GS), it hasn't crossed into bubble territory. "There are elements of investor behaviour and market pricing currently that rhyme with previous bubbles," Peter Oppenheimer, Goldman's chief global equity strategist, wrote in a new note. "However, we see key differences." The report points to several similarities between today's market and past speculative booms. Valuations are climbing, market leadership is narrowing, and capital ...

US stock futures edged higher on Wednesday as Wall Street waited for the latest Federal Reserve minutes to provide hints to future policy amid a shutdown-driven dearth of data. Futures on the Dow Jones Industrial Average (YM=F), the S&P 500 (ES=F), and the tech-dominated Nasdaq 100 (NQ=F) all moved up roughly 0.2%, on the heels of a losing day for the major gauges. Meanwhile, gold (GC=F) futures continued their record-breaking rally after topping $4,000 per ounce for the first time on Tuesday. Investors ...

David Rosenberg has a question for his critics: Does a so-called "perma-bear" make investors money? He also has an answer. The top economist and Rosenberg Research founder — who's known for making persistently bearish calls on the US economy and markets — said that he put his money where his mouth was by creating a fund based on his gloomy predictions. So far, it's paid off. The portfolio, called the Rosie Macro Fund, is up 28% this year, Rosenberg said on Tuesday. That handily outpaces the broader S&P 50 ...

NEW YORK (AP) — If the U.S. government's latest shutdown can't stop the stock market, what can? Stock prices keep rising, even as the shutdown delays important economic reports that usually steer trading. The S&P 500 and Dow Jones Industrial Average set all-time highs Friday. It's not just Big Tech driving the market, which has often been the case in recent years. Sure, Nvidia and other darlings of the artificial-intelligence frenzy are still climbing, but almost everything on Wall Street is coming up a ...

Market Overview - The stock market experienced a significant rally in the third quarter, with the average U.S. diversified equity fund gaining 7.2% and U.S. stock funds up nearly 11% year-to-date [3][6] - The AI trade continues to thrive despite concerns about overvaluation, contributing to the overall bullish sentiment in the market [2][9] Economic Indicators - Investors received an interest rate cut in late September, which has been a key factor in driving market optimism [1] - Corporate earnings are projected to achieve double-digit growth this year, further supporting the positive outlook for equities [1] Sector Performance - Small-cap stocks outperformed larger counterparts, with the Russell 2000 index rising 12% in the third quarter, surpassing the Nasdaq's 11.2% gain [7] - Technology funds, particularly those focused on AI, saw substantial gains, with science and technology funds up 11.2% in the third quarter [9] Valuation Concerns - The S&P 500's trailing 12-month P/E ratio stands at 25.9, exceeding historical averages, raising concerns about potential market overheating [5] - There are indications of euphoria in certain market segments, particularly in high-flying stocks, which may be overvalued [10][11] Fund Performance - Fund managers are struggling to keep pace with the S&P 500 index, which has risen 14.5% year-to-date, compared to lower returns from actively managed funds [6] - Growth funds are benefiting from a preference for companies with strong earnings momentum, with large-cap growth stocks gaining 15.2% year-to-date compared to 6.1% for small-cap growth stocks [12][13] Bond Market Insights - Following the Fed's rate cut, bond prices rose, leading to gains for various bond funds, with the iShares Core US Aggregate Bond gaining 6.1% year-to-date [16][17] - The yield curve is expected to steepen, suggesting that intermediate bonds may offer good value for investors [18][19] Global Equity Performance - International equity funds outperformed the S&P 500, with year-to-date gains of 22.6%, driven by strong performance in China region funds [20][21]

Market Overview - U.S. stocks are maintaining record levels, with the S&P 500 rising 0.1% and the Dow Jones Industrial Average increasing by 68 points (0.2%) [2] - The Nasdaq composite is up 0.3%, hovering above its own record [2] Economic Data Impact - The government shutdown has delayed the weekly report on U.S. jobless claims and the monthly jobs report, increasing uncertainty in the market [3][4] - Investors are hoping for a specific slowdown in the job market to influence the Federal Reserve's interest rate decisions [4] Corporate Developments - Corporate announcements are driving trading activity, particularly in the chip and AI sectors following OpenAI's partnership announcements for a $500 billion AI infrastructure project [7] - Stocks of Samsung Electronics and SK Hynix rose by 3.5% and 9.9% respectively, while Advanced Micro Devices and Broadcom also saw gains of 3.7% and 2.2% [7][8] Sector Performance - Concerns are rising about a potential bubble in AI stocks due to significant investments in the sector [8] - Occidental Petroleum's stock fell by 7.8% after agreeing to sell its chemical business to Berkshire Hathaway for $9.7 billion [9] - Fair Isaac's stock surged by 20.7% after launching a program for mortgage lenders to access FICO credit scores directly [9] International Market Reactions - TransUnion's stock dropped by 9.5%, Equifax fell by 7.7%, and Experian's stock decreased by 3.6% following Fair Isaac's announcement [9][10] - The FTSE 100 in London edged down by 0.2%, while South Korea's Kospi jumped by 2.7% [10]

As the current S&P 500 bull run enters its 36th month, some concerns have arisen about a potential bubble. ...