Happycoin.club - Experts are sounding the alarm on the current trajectory of the US stock market, highlighting the extraordinary rise of Nvidia (NASDAQ:NVDA), whose market capitalization recently surpassed $3 trillion. This surge is largely due to the hype surrounding artificial intelligence.
In examining the current state of the stock market, financial analysts Pam Martens and Russ Martens drew troubling analogies to the dot-com bubble of the late 1990s, which culminated in a significant market correction.
If we draw parallels with 1929, then the market soared to dizzying highs, but mass investment was driven by euphoria, not fundamentals. Nvidia's rally, while reflective of real AI growth, still risks being out of touch with economic realities, setting the stage for a sharp potential correction.
Economist Harry Dent, in turn, predicted a stock market downturn worse than the 2008 crisis:
We've never seen [a government] maintain a completely artificial bubble for a decade and a half... we'll see what happens after that.
I can say that there was not a single bubble, and this one is much larger and longer than any others, which did not end badly.
I think we'll see the S&P down 86% from the top and the Nasdaq down 92%. A heroic stock like Nvidia, no matter how good it is... will fall 98%.
Further complicating matters is increased stock market volatility, where high valuations, especially in the technology sector, are supported by speculative trading rather than company fundamentals.
