Why Andy Constan Says The AI Bubble is in Earnings, Not Price
About this episode
Andy Constan discusses the AI bubble being in earnings rather than prices, highlighting unsustainable earnings expectations in the S&P 500.
Learn More About Unlimited HFGM Global Macro ETF $HFGM: https://unlimitedetfs.com/hfgm Monetary Matters is now streaming daily as part of Monitoring the Situation. Join us live on X and YouTube from 4 to 5 PM ET Monday through Friday @mtsituation for live interviews and analysis breaking down the market’s most important situations. This is recording of a recent live interview from MTS. Veteran macro trader Andy Constan joins Monetary Matters live on Monitoring the Situation to discuss why he has 100% confidence that AI stocks are in a bubble. The nuance though is that unlike most bubbles, where the bubble is in unsustainable prices with no earnings, this is a bubble in unsustainable earnings that will eventually fall and make the current somewhat reasonable prices look lofty in hindsight. Constan highlights metrics like the $400 billion in S&P 500 earnings expectations and the over 60% of that is supposed to accrue to AI winners, and argues that based on projected GDP growth that their simply “isn’t enough pie for all of the S&P 500 to eat” without it coming other very important areas of the economy. Follow Andy Constan on X: https://x.com/dampedspring Follow Jack Farley…
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