Thoughtful Money with Adam Taggart Will 2026 Be The Year The Stock Bubble Bursts? | Kevin Muir
22 snips
Dec 21, 2025 In this engaging discussion, market veteran Kevin Muir, founder of The Macro Tourist newsletter, dives into the hot topic of potential stock market bubbles. He expresses concern over the extreme valuations, especially among the tech giants, predicting a possible 33-50% correction ahead. Kevin also highlights the conflicting economic signals and how trade policies might affect capital flows. He warns against the risks of concentrated tech portfolios and suggests a shift towards small caps and commodities may be on the horizon.
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AI-Fueled Market Bubble Risk
- Kevin Muir argues the market is an AI-driven bubble, with top stocks priced for perfection and extreme concentration risk.
- He warns Mag7 names regularly suffer one-third to 50% haircuts and a brutal correction is inevitable.
Main Street Versus Wall Street Trade-Off
- Kevin explains Main Street winning often conflicts with Wall Street continuing to win due to trade and capital flow links.
- Policies that narrow the trade deficit tend to reduce foreign capital inflows and pressure stock prices.
Avoid Concentrated Mag7 Bets
- Avoid concentrated exposure to Mag7 and consider walking away from the trade if you can.
- If you're a trader, Kevin says shorting these names offers a better risk-reward than owning them.