The Bubble Everyone Sees - And The One I'm Preparing For
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Leo NelissenInvesting GroupFollow5ShareSavePlay(20min)Comments(7)SummaryI do not believe we are in a market bubble, but recognize risks and advocate for diversification.AI-driven capex is fueling economic growth, yet valuations require margin expansion and prudent asset selection.Howard Marks distinguishes between mean reversion and inflection bubbles, with AI likely representing the latter—innovation with real value but selective winners.A moderate, diversified equity approach is best, avoiding both all-in and all-out stances amid uncertainty and potential sector-specific bubbles. Just_Super/iStock via Getty Images "All models are wrong, but some are useful." - George E.P.
Box Introduction This year, we have spent a lot of time discussing this market and whether we're dealing with a bubble or not. As most of my readers may know, I haveThis article was written byLeo Nelissen47.97K FollowersFollowLeo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You