{"id":32577,"date":"2023-07-07T07:30:00","date_gmt":"2023-07-07T11:30:00","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/is-the-stock-market-in-a-bubble-right-now\/"},"modified":"2023-07-07T07:30:01","modified_gmt":"2023-07-07T11:30:01","slug":"is-the-stock-market-in-a-bubble-right-now","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32577","title":{"rendered":"Is The Stock Market In A Bubble Right Now?"},"content":{"rendered":"<div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key Takeaways<\/h2>\n<ul>\n<li>The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech<\/li>\n<li>The rapid growth against a mixed economic backdrop has some analysts questioning whether we\u2019re entering bubble territory<\/li>\n<li>But not everyone sees that as a negative, with GMO executive Ben Inker saying that a crash would be a \u201cwonderful, generational opportunity to make money\u201d<\/li>\n<\/ul>\n<p>After a horrible 2022, the US stock market has been soaring so far in 2023. The S&amp;P 500 is up 15.36% year to date, while the tech focused Nasdaq Composite has gained a whopping 31.69% since January 1st.<\/p>\n<p>There have been a number of reasons behind the surge, from (somewhat paradoxically) mass layoffs giving shareholders confidence of improved profitability to the hype around AI boosting tech stocks.<\/p>\n<p>But there\u2019s no getting away from the fact that behind all that is an economy that is throwing up mixed data, to say the least. The job market has remained incredibly strong, but cost of living has risen substantially and interest rates have been put up significantly to combat it, which has frozen the housing market in its tracks. All the while wage growth still isn\u2019t keeping pace with inflation.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>So does this rally have the legs to continue for the long term, or is the current bull market nothing but hot air? Let\u2019s look at the details.<\/p>\n<p><em>Want to invest in solid companies that will truck along steadily in the good times and potentially hold up better if a bear market hits? Think value stocks. The favorite strategy of Warren Buffet looks to companies like Johnson &amp; Johnson and Walmart to provide long term growth, and we\u2019ve created the <\/em><em data-ga-track=\"ExternalLink:https:\/\/learn.tryq.ai\/blog\/value-vault-kit\">Value Vault Kit<\/em><em> to offer it with an AI twist.<\/em><\/p>\n<p><em>Every week our AI predicts the performance and volatility of a wide range of potential value stocks, and then automatically rebalances according to those predictions.<\/em><\/p>\n<p><em data-ga-track=\"ExternalLink:https:\/\/refer.tryq.ai\/lqKiZnMOeBb\">Download Q.ai today<\/em><em> for access to AI-powered investment strategies.<\/em><\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The argument for a stock market bubble<\/h2>\n<p>There are a lot of different circumstances that can lead to a bubble. One of the classic bubbles we\u2019ve seen in recent years has been crypto, which has gone through phases of massive growth based on little more than Tweets, TikToks and celebrity hype.<\/p>\n<p>The bubble created multi-millionaires practically overnight, and when it popped it took down an entire industry. Many, many companies have gone bankrupt, mass fraud has been uncovered and a ton of high profile players in the space have been arrested. Yeh, pretty dramatic stuff.<\/p>\n<p>Just because prices rise quickly doesn\u2019t necessarily mean we&#8217;re definitely in a bubble, but the hype around AI right now has some very clear parallels to the crypto mania of a couple of years ago.<\/p>\n<p>The noise has quieted a little in recent months, but from the release of ChatGPT to around May 2023, the number of AI announcements, startups and new \u2018AI experts\u2019 exploded. As a company who\u2019s been in the AI game for years, it\u2019s clear to see that many of these wouldn\u2019t last long.<\/p>\n<p>So, the case for a bubble is that the hype around AI has driven valuations far above what they should be. While this is focused in tech, that sector is so big that it tends to sway markets.<\/p>\n<p>Renowned investor Jeremy Grantham, a man who predicted the 2000 dot com crash and the 2008 financial crisis, believes that this is all just part of a wider \u201csuper bubble\u201d that spans the stock market, real estate and even commodities.<\/p>\n<p>&#8220;We had a very complicated but fairly standard-looking superbubble, losing air in the traditional way, right up to this recent rally,&#8221; he stated to the Wall Street Journal.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The argument against a stock market bubble<\/h2>\n<p>But AI is different to crypto, in that there are very real use cases and substantial adoption already. AI and machine learning has already been used for decades in almost every industry imaginable, and rather than being the discovery of a new technology, ChatGPT simply packaged it in a new way.<\/p>\n<p>There are most certainly going to be startups and AI features that fall by the wayside, but as Amazon CEO Andy Jassy recently said, this current iteration of generative AI will move from a \u201chype cycle\u201d to a \u201csubstance cycle.\u201d<\/p>\n<p>That is to say that some of the air might come out of the market, but what\u2019s left will be only the best and most valuable applications of the technology, which can continue to drive real shareholder value.<\/p>\n<p>From a macroeconomic standpoint, there\u2019s also some compelling evidence to suggest we\u2019re in a pretty strong place. Despite the Fed\u2019s most aggressive rate policy since the 1980\u2019s, the job market remains incredibly strong.<\/p>\n<p>The ADP jobs report for June has just been released, with the figure almost double both the predicted figure and the number from the previous month. It\u2019s a huge result that shows employers are still hiring new staff at a high level.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">How investors should navigate bubbly waters<\/h2>\n<p>As with any market cycle, there\u2019s really no way to know for certain exactly when and if a bubble will burst, or if we\u2019re even in one at all. Even if we are, a bubble can inflate for many years before it eventually does come crashing down, and those who sit on the sidelines can miss huge gains in the process.<\/p>\n<p>Not only that, but a market crash isn\u2019t necessarily a bad thing for those with a long term view. Ben Inker, co-head of asset allocation at global asset management firm GMO recently made a comment in an interview with the Wall Street Journal, saying that a market crash now would be a, \u201cwonderful, generational opportunity to make money.\u201d<\/p>\n<p>So for retail investors, the plan is simple. Have a long term view, ride the wave of any bubble that appears and pick up gains in the process, and if possible look to capitalize on a crash when it happens.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The bottom line<\/h2>\n<p>Bubbles come and go and there are likely to be dozens that burst in the space of a lifetime. Far from being a bad thing, asset bubbles can create huge amounts of wealth, even if they are swift and backed by nothing. Just look at crypto.<\/p>\n<p>The key is to keep a diversified approach to markets to ensure that you are ruined when the inevitable pop comes.<\/p>\n<p><em>Are you concerned about a potential recession and market crash? If so, we\u2019ve created the <\/em><em data-ga-track=\"ExternalLink:https:\/\/learn.tryq.ai\/blog\/recession-resistance-kit\">Recession Resistance Kit<\/em><em> which has been specifically designed to perform in just that environment. The Kit holds a diversified mix of recession resistant stocks, and every week our AI predicts which of these are expected to perform the best on a risk-adjusted basis.<\/em><\/p>\n<p><em>It won\u2019t be big things if a recession doesn\u2019t come, but it&#8217;s an insurance policy worth having if it does.<\/em><\/p>\n<p><em data-ga-track=\"ExternalLink:https:\/\/refer.tryq.ai\/1IlWOGOOeBb\">Download Q.ai today<\/em><em> for access to AI-powered investment strategies.<\/em><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/qai\/2023\/07\/07\/is-the-stock-market-in-a-bubble-right-now\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a mixed economic backdrop has some analysts questioning whether we\u2019re entering bubble territory But not everyone sees that as a negative, with GMO executive Ben Inker [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":32578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-32577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is The Stock Market In A Bubble Right Now? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=32577\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is The Stock Market In A Bubble Right Now? | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=32577\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-07T11:30:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-07T11:30:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1688729400_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"798\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=32577#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=32577\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Is The Stock Market In A Bubble Right Now?\",\"datePublished\":\"2023-07-07T11:30:00+00:00\",\"dateModified\":\"2023-07-07T11:30:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=32577\"},\"wordCount\":1183,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=32577#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=32577\",\"url\":\"https:\/\/ifintechworld.com\/?p=32577\",\"name\":\"Is The Stock Market In A Bubble Right Now? | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-07T11:30:00+00:00\",\"dateModified\":\"2023-07-07T11:30:01+00:00\",\"description\":\"Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=32577#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=32577\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=32577#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Is The Stock Market In A Bubble Right Now?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Is The Stock Market In A Bubble Right Now? | iFintechWorld","description":"Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=32577","og_locale":"en_US","og_type":"article","og_title":"Is The Stock Market In A Bubble Right Now? | iFintechWorld","og_description":"Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a","og_url":"https:\/\/ifintechworld.com\/?p=32577","og_site_name":"iFintechWorld","article_published_time":"2023-07-07T11:30:00+00:00","article_modified_time":"2023-07-07T11:30:01+00:00","og_image":[{"width":1200,"height":798,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1688729400_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=32577#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=32577"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Is The Stock Market In A Bubble Right Now?","datePublished":"2023-07-07T11:30:00+00:00","dateModified":"2023-07-07T11:30:01+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=32577"},"wordCount":1183,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=32577#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=32577","url":"https:\/\/ifintechworld.com\/?p=32577","name":"Is The Stock Market In A Bubble Right Now? | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-07T11:30:00+00:00","dateModified":"2023-07-07T11:30:01+00:00","description":"Key Takeaways The US stock market has made big gains so far this year off the back of AI and efficiency moves from big tech The rapid growth against a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=32577#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=32577"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=32577#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Is The Stock Market In A Bubble Right Now?"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/32577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32577"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/32577\/revisions"}],"predecessor-version":[{"id":32579,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/32577\/revisions\/32579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/32578"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}