Source: Business Insider
Society Generale global strategist Albert Edwards says today’s combination of surging stock prices and sluggish growth has created shaky valuations reminiscent of the tech bubble two decades ago. He says that, over the last year, investors have made a big bet on faster economic growth and stronger profit growth — but there’s little evidence their confidence will be justified. Edwards says analysts appear to be reverse-engineering their profit estimates so they can keep “buy” ratings on some stocks, and explains that this questionable practice also preceded the dot com bust. Click here for more BI Prime stories . Stocks have been on a phenomenal run since last spring, but the spectre of the late 1990s and early 2000s tech bubble still keeps Wall Street veterans up at night. Societe Generale global strategist Albert Edwards — who foresaw that painful crash — says he thinks some of the worst excesses of that time are being repeated today. While stocks are at record highs after rallying 29% in 2019, Edwards says there are big warning signs.