#market-bubble

#market-bubble

"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."

"There is definitely a bubble in markets," Dalio said, adding that while the situation doesn't perfectly match 1929 or 1999, the indicators he tracks show the U.S. is closing in fast. "The picture is pretty clear," he said. "But we don't have the pricking of the bubble yet." And, crucially: "A lot can go up before the bubble bursts."

People who think AI is a bubble could say it's "overheated" or it's "inflated"-which are descriptive terms that definitely apply. But they're not using those terms. They're using the term "bubble." So, what is the single most defining characteristic of a bubble? Like...in real life. Bubbles pop. From a recent LinkedIn interaction. That's the whole point of bubbles. When you go into nature, do you see bubbles that expand and contract and survive? No. They pop. It's kind of their main characteristic!