"Following in the footsteps of David Solomon at Goldman Sachs and Jamie Dimon at JPMorgan, Ark Investments guru Cathie Wood recently warned of the potential for a reality check for the stock market after the massive Artificial Intelligence rally that has driven the major indices to all-time highs over the last three years. Of course, "Reality Check" is Wall Street word salad for a sell-off and a potential correction."
"While she doesn't see an AI bubble, she did acknowledge the prospect of a reality check (a sell-off) in artificial intelligence valuations, and most likely she, like the other two Wall Street giants, is well aware that the market can't go straight up forever. 24/7 Wall St. readers need to remember that between February and April of this year, we had a correction, and while we have rallied by more than 30% from the bottom, valuations and stock prices are indeed stretched."
An Artificial Intelligence-driven rally pushed major indices to all-time highs over three years. A reality check, meaning a sell-off or correction in AI valuations, remains possible even if an outright bubble is not seen. A correction occurred between February and April, followed by a more than 30% rally from the bottom that left valuations and prices stretched. Rising interest rates next year could catalyze a sell-off, particularly if inflation rises and forces the Federal Reserve to tighten. High-yield safety-net dividend stocks with decades of dividend growth and Buy ratings offer defensive placement now.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]