Stock market

Stock market sentiment 

Professionals see bubble in private credit – short Buffett’s companies

Hedge fund manager Lee Robinson turned Wall Street on its head when he saw a $20 million position grow to $200 million by betting on a US housing bubble in 2008. Now he sees the next big risk – in the private credit market, writes Bloomberg.

Robinson focuses on the indirect effects and short several of the industry’s largest financiers: insurance companies. He has increased his negative positions in Lincoln National, MetLife and even Warren Buffett’s Berkshire Hathaway, among others.

Robinson believes that today’s market is reminiscent of the time before the collapse of Lehman Brothers in 2008. Despite growing concerns about private credit, risk premiums on corporate bonds are still close to historically low levels.

– In August 2008, we were tearing our hair out over how volatility could be so low. It feels a bit the same now.

The mood on the stock market

The warning: “The AI ​​bubble is the biggest humanity has ever seen”

Published: Today 07.32

The global technology frenzy reflects the market’s concern that the AI ​​boom has gone too far. At the same time, investors are expected to soon buy the big technology companies again. This is what analysts are telling several media outlets after Tuesday’s steep stock market drop.

Matt Maley at the management company Miller Tabak believes that it will take significantly greater weakness in the US stock market to trigger any serious warning signals, writes Bloomberg.

Paul Gambles at the advisory firm MBMG is more concerned.

– The AI ​​bubble is by far the biggest stock market bubble humanity has ever seen, he tells the news agency, but adds that there is more fall before there is a crash.

Read the experts’ comments on the stock market development below.

Wall Street Experts

Chris Low, FHN Financial:

“The risk version reflects fears that the enthusiasm for AI may have gone too far.”

Matt Maley, Miller Tabak:

“With high leverage in South Korea and around the world, investors should be wary of getting too complacent.”

Julian Emanuel, Evercore ISI:

“Tech giants are set to return to investor favor after the sell-off that has weighed on several of the largest companies in recent weeks. The reports will be the real evidence.”

Brock Weimer, Edward Jones:

“The broader market remains supported by strong fundamentals. But we believe diversification is key to managing risk.”

Edward Harrison, Bloomberg:

“The buy-the-dip mentality is not dead yet. Given the lack of news that triggered this decline, today’s price action must be seen in that context.”

Angelo Kourkafas, Edward Jones:

“There is some concern around sentiment, valuations and positioning, rather than any clear change in the fundamental AI story.”

Steve Sosnick, Interactive Brokers:

“This is what happens when markets get overheated.”

Thomas Martin, Globalt:

“Some of the news flow around AI raises questions about all the investments that are being made, the capital spending and the rapid expansion of semiconductor capacity.”

Paul Gambles, MBMG Group::

“We don’t think the market has thrown in the towel yet. There is a lot more to fall before there is a real crash.”