""I think there's a bubble but there again I always think there's a bubble," Edwards told Bloomberg's Merryn Somerset Webb in a recent appearance on her podcast Merryn Talks Money, noting that during each cycle, there is always a "very plausible narrative, very compelling." However, he was unwavering in his conclusion: "it will end in tears, that much I'm sure of.""
"Edwards told Fortune in an interview that previous theories about a bubble were "very convincing in 1999 and early 2000, they were very convincing in 2006-2007." Each time, he said, the "surge in the market was so relentless" that he just stopped talking about bubbles, "because clients get pissed off with you repeating the same thing over and over again and being wrong," only to change their tune after the bubble bursts."
Albert Edwards labels the current U.S. equity market a dangerous bubble driven largely by high-flying technology and AI. Société Générale does not share that view and presents Edwards as an in-house alternative perspective. Edwards warns that the circumstances surrounding this cycle's eventual collapse are fundamentally different and could produce a deeper, more painful reckoning for the economy and average investors. He cites past episodes in 1999–2000 and 2006–2007 as examples of convincing bubble narratives and says relentless market surges cause investors to ignore warnings while they make money.
Read at Fortune
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