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A veteran analyst says AI is unproven, and stocks such as Nvidia are in a bubble and could wither. Ferguson sees shades of the dot-com bubble, warning Nvidia might lose its edge like Intel and Cisco did. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementArtificial intelligence is still just a pricey experiment, AI stocks are in a dangerous bubble, and Nvidia might wither like dot-com darlings Intel and Cisco, according to a markets guru. Ferguson recommended investors diversify their portfolios away from large-cap US growth stocks to limit their exposure if the tech bubble bursts.
Persons: MacroStrategy's James Ferguson, Ferguson, , James Ferguson, Merryn, I'm, It's Organizations: Nvidia, Intel, Cisco, Service, MacroStrategy, Tech
The "Magnificent Seven" dominate the stock market to a worrying extent, one expert says. Deutsche Bank's economics chief, Jim Read, said investors should be wary of an economic slump. The "Magnificent Seven" are dominating the stock market to a worrying degree — and investors are underestimating the risk of a recession, one expert says. Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta, and Tesla are collectively valued at more than $13 trillion, representing about a quarter of the entire US stock market. "My natural inclination is to say this is crazy," Jim Read, the global head of economics and thematic research at Deutsche Bank, told the "Merryn Talks Money" podcast this week.
Persons: Jim Read, Tesla Organizations: Deutsche, Microsoft, Apple, Nvidia, Deutsche Bank, Business
The US economy may be about to relive the "roaring '20s," according to Ed Yardeni. "We're in the early stages of a productivity growth boom," the veteran strategist told Bloomberg. His comments come with the economy expanding at a stronger-than-expected pace and the S&P 500 trading at an all-time high. AdvertisementVeteran market strategist Ed Yardeni thinks the US economy might be about to relive the "roaring '20s". I think we've got a technology revolution that started in the 1990s… every company is a technology company.
Persons: Ed Yardeni, Bloomberg, , Merryn, he's, We've, we've Organizations: Service, Yardeni, Bloomberg, UBS Locations: Swiss
The elite investor sees house prices falling and predicts a recession will strike next year. AdvertisementAdvertisementJeremy Grantham floated the possibility of a 50% crash in the S&P 500, predicted US house prices would drop, and rang the recession alarm during the latest episode of Bloomberg's "Merryn Talks Money" podcast. They're vulnerable on the debt front, vulnerable on the financial front, and vulnerable on a broad economic front." "An over 40-year period of driving down mortgage rates, of course you drove up house prices all over the world, pretty much. "House prices are worse for the ordinary household.
Persons: Jeremy Grantham, , Merryn, bitcoin, It's, Russell, overpricing, it's, They've Organizations: Service, Commodities
The S&P 500 will likely plunge by 30%, and could be cut in half, Jeremy Grantham says. AdvertisementAdvertisementThe S&P 500 is likely to crash by 30%, and could nosedive by over 50%, Jeremy Grantham has warned. He also predicted that US house prices will slump and a recession will strike next year, and dismissed bitcoin as a con. AdvertisementAdvertisement"My guess is we will have a recession," Grantham said. The steeper mortgage rates will "drive down" house prices, Grantham said.
Persons: Jeremy Grantham, Grantham, bitcoin, , Merryn, who's, he's Organizations: Service, Apple, Nvidia —, Consumers, Federal Reserve Locations: Grantham
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