"Top financial commentator Robert Armstrong, of the Financial Times' Unhedged blog, took notice (Armstrong famously coined the term "TACO" trade, for "Trump always chickens out"). Damadoran is unusual, Armstrong wrote, because he's not a perma bear like, say, Michael Burry of "The Big Short" fame, who has warned of a bubble and cryptically closed his hedge fund. Damodaran is "a true enthusiast" who "likes investing, believes in markets, and has a strong risk appetite.""
"Armstrong argued the view is worth considering, even if you believe, as Armstrong does, that a growing U.S. economy and strong cash flow and less-wild valuations elsewhere in the Magnificent 7 aren't at bubble levels. He said he can only offer "a mild level of disagreement" with Damodaran's statement that there's "nowhere to hide in stocks" amid the AI boom/bubble situation."
Aswath Damodaran judged the market to be underpricing a potentially catastrophic risk and suggested reallocating capital out of stocks into alternative assets like baseball cards. Scott Galloway forecast an inevitable reckoning within 12 months that could produce either chaos in labor markets from generational inequality or a severe market correction hitting the Magnificent 7. Robert Armstrong noted Damodaran's position is unusual because he generally favors investing and has a strong risk appetite. Armstrong said the view merits consideration even while he believes growth and cash flow reduce bubble risk in some large tech firms.
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