S&P 500 could hit 7,000 on AI hype by the end of 2025: Economist
Vložit
- čas přidán 6. 09. 2024
- The AI race has pushed the market to record highs this year, sparking investor concerns of a pullback. Capital Economics Group chief economist Neil Shearing joins Morning Brief to break down why he thinks there's more room for growth amid continued demand for the technology.
"Normally, what happens during these big breakthrough technologies is that markets try to capture the benefits of that growth ahead of them actually crystallizing in the real economy. So you tend to get hype, you tend to get bubbles forming - we obviously had that in the dotcom boom. And our view is that the same thing is playing out with AI, and so there's a debate about whether or not we're in an AI bubble. How far does that have to inflate? If you look at history, it has a lot further to inflate, hence our view that the S&P 500 (^GSPC) is going all the way to 7,000 potentially by the end of next year," Shearing explains.
He notes that a major difference between the AI boom and the dotcom boom lies in the fact that the hype and revenues generated by AI have occurred in established companies like the Magnificent Seven. In the dotcom boom, he explains, "a lot of it was about small, scrappy startups where the technology was being developed. So we've got large listed companies developing this technology and actually, it's generating revenue as well." As the hype around AI continues to build, Shearing believes that margins will continue to expand.
How and when the AI bubble may burst, however, is a lot harder to predict: "We can start to think about how far it might inflate by looking at things like what do we think the future path of earnings in these companies might be, and what tends to happen to earnings multiples during bubbles. That can anchor a view as to how far this bubble might inflate." Shearing believes the S&P 500 has about another two years before the AI bubble pops, and its breaking point could be attributed to anything from an earnings miss to an economic downturn.
#youtube #news #S&P
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: www.instagram....
TikTok: www.tiktok.com...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance
Honestly, this situation makes me uneasy, especially with the potential depression, not just a recession. I'm not sure about my $130K investment strategy given the economic uncertainty.
If you're not familiar with market investing tactics, you should get advice from a financial counselor.
I agree! That's why I work with one. My $520K portfolio is well-prepared for all market conditions, having grown 85% since early last year. My advisor and I are planning for this year too. my opinion, financial advisors are among the most important professionals, just like doctors.
I think could really use the expertise of an advisor like that.
Her name is BONITA JEANETTE RODRIGUEZ. Just look her up
Thank you for the recommendation. BONITA seems to have a solid reputation. I checked her credentials and set up a call with her.
Bought NVDA66K after watching your video, super excited! 💰
crypto is risky thats why we should choose a project which already has good brand like Nvidia
It will soon all over the news
Why everyone is talking about NVDA?
Just read news about NVDA this morning. Presale is open right now
Absolutely! NVDA is a winner! 💪
AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long-term- growth potential, and provide a platform for other AI -companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
It’s important to -consult with a financial-advisor before making any investment decisions.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I re-member couple summers back, after my lengthy divorce, I needed a good -b00st to help my-business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve not-withstanding infla-tion, from $275k to $850k.
Please -can you leave the in-fo of your ln-vestment advsor here? I’m in dire need for one.
Her name is 'GRISELDA - ELENA - JEMMOTT' She maintains an online presence. just make a simple search for her name online.
She's known as a 'GRISELDA _ELENA JEMMOTT_'. One of the finest portfolio managers in the field also widely recognized. Just research the name. You’d find necessary details to work with and set up an appointment.
.
Between S&P 500 and buying individual stocks, which is more profitable for short term profit say 1 or 2 years?
Depends on the individual stock
Definitely Individual Stocks. The potentials with them are way too big when compared to the S and Ps. The thing is you have make good research so you bet on the good ones, alternatively, you can use a good financial expert to help you out (that way you don't have to do the job and minimize risks). Made my first million few weeks back during the Nvidia rise, on the other hand, the S and Ps have had less than 30% increase in the past 3 years.
nice... this makes a lot of sense... how did you start? did you use an expert?.. how can I get one?...
I don't really understand your first question. For the second, yes I did. You should start by looking out for those from credible firms and good track records. Also make sure the person is licensed. Personally, I use Michael, Allen Eckrich. He's good and you could also look him up too.
thinking short term is a bad investing approach
I recently sold my long-term position and currently sitting on about 150k, do you think TSLA and Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks?
Palantir, ARM and Nvidia are all still good buy for now says my advisor, so i think you should speak with one too. This experts understand the market better...
Exactly, I used to undermine the efficiency of a financial advisor until my wife company assigned her an investment adviser back in 2020 and tbh, it’s been the best financial decision I’ve made.
@@ElvisMarshall-xo2lw This actually isn't the first time i am getting this suggestions, but finding a decent one has been challenging. Do you mind leaving some recommendations?
Well,I dont know if you are confortable trying finacial advisors recommended on comment sections but anyway, Svetlana Sarkisian Chowdhury is the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
@@ElvisMarshall-xo2lw Glad for this conversation. It was easy to find Svetlana Sarkisian Chowdhury . Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé. Thanks for the tip
Thanks for the insights! Bought NVDA66K, predicting big returns! 📈
What do you think sets NVDA apart from other projects? It seems to be dominating discussions lately
NVDA will atleast beat LINK
very promising
Much better than all those shits altcoin with no utilities
undervalued project
Thanks for sharing FET and NVDA66K. 💯
Thrilled about NVDA's potential! Happy to be part of this community and looking forward to gains!
Happy to invest in NVDA together!
Looking forward to NVDA's growth!
NVDA is a great investment choice!
Feeling positive about NVDA's future. Holding strong and expecting great returns. Let's go NVDA!
90% Bot comments
10% Real comments
LOL.
Beware of the bubble. Make sure you diversify.
Thanks for the advice! Got NVDA66K, feeling bullish! 🚀
NVDA66K is still extremely undervalued
Your video convinced me to invest in NVDA66K, expecting 10x gains. Excited for listings!
Bot alert.
I'm buying more NVDA right now. Not a bot, pure real invesment logic here. Thanks
Non bot comment😂
Considering the buffett indicator is flashing red signals right now, I would say this economist is most likely wrong. We’ll find out if the bubble pops over the next year or two.
It will. 💚🖤📈🇺🇸
no
It could hit 12,000 or it could hit 4,000 .... Any more guesses 🤣
Could be, in theory it can😋 But it doesn't..... , It isn't even out of it's bear market🤥..., probably in the middle of it!🤨...Economist's work with theire gutfeeling, so always wrong😵💫.......
it is a couple of days since the interview Neil should start looking for a new job since he is so bad at forecasting
I could be a millionaire by the end of next year.
Silly rabbit. Valuations don’t matter. 😂
Why just 7,000... why not 33,333???
It is... counterfeited fiat monopoly debt currency notes!!
Yeah... its soooo real...lol...genius!!
Sing Hallelujah!!