Big Take The Most Worrying — and Reassuring — Signals in the US Economy
19 snips
Nov 13, 2025 John Authers, a Bloomberg Opinion columnist and senior markets editor, explores the current state of the U.S. economy. He discusses investor fears surrounding an AI bubble and the implications of rising stock valuations. Authers delves into private credit failures and warns of regulatory gaps, labeling them 'cockroaches' in the economy. He also addresses the contradiction of high inflation amidst rate-cut expectations and explains how recent tariffs are impacting inflation. Overall, he paints a complex picture of our economic landscape and market sentiment.
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Valuations Are The Core Risk
- U.S. stocks are very expensive and valuations are the biggest market risk right now.
- Paying high prices today reduces your long-term expected returns, even if future growth arrives.
Let Price Guide Long-Term Investing
- Consider price you pay as the dominant factor for long-term returns.
- Avoid buying assets at extreme valuations unless you truly believe future gains justify them.
AI Spending May Fuel A Classic Boom
- Massive AI spending raises questions about whether future benefits justify current costs.
- Transformative technologies often spark investment booms that later produce serious economic problems.