Tech’s Fast and Narrow Rally Is on Shaky Ground
The stock market has too much riding on a volatile and cyclical industry.
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The latest chapter in the artificial intelligence bull market has more of the hallmarks of the kind of euphoria that can lead to its own demise. That’s because it largely relies on the cyclical semiconductor industry.
Back in August, Oaktree Capital Management Co-Founder Howard Marks told Bloomberg Television that the last time stocks were this expensive relative to reality was around 1997, “and the market went on to rally for another three years.”