Markets Are In A "Speculative Blowoff" | David Hay

But when will it end??

Back in 1996, Federal Reserve Chair Alan Greenspan famously said:

"How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?"

It was a prophetic question, as the stock market soon after became caught up in the mania of the DotCom bubble, reaching unprecedented levels of overvaluation followed by a precipitous price correction.

The Nasdaq didn't return to its 2000 highs until 15 years later.

Many are now feeling like it's deja vu all over again with the latest run-up in a small number of stocks, colloquially known as the Magnificent 7, driving the market indices to new record highs.

Are we in a new era of irrational exuberance, this time driven by the promise of artificial intelligence?

And if so, what's the danger this time of another prolonged contraction ensuing?

For perspective, we're fortunate to talk today with David Hay, Chief Investment Officer & Principal at Evergreen Gavekal.

He’s confident we’re seeing yet another “speculative blowoff”in stocks.

To hear how and when he thinks this is likely to end, click here or on the image below:

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