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Société Générale strategist Albert Edwards says the AI boom resembles past market bubbles, with both earnings and valuations overstretched. He warns rising borrowing costs could trigger a correction similar to the dot-com era despite short-term boosts from global deflation trends. Edwards suggests rotating toward gold, commodities, and value stocks instead of crowded momentum trades.

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00:00It's Benzinga bringing Wall Street to Main Street.
00:03Societe General strategist Albert Edwards warned that the artificial intelligence boom mirrors
00:07past bubbles, including the 1990s tech mania, according to Bloomberg. He said corporate
00:13earnings and valuations are both overinflated, forming a double bubble that could burst once
00:18high, borrowing costs take effect. Edwards argued that today's AI narrative is as persuasive
00:24and risky as the new economy story that fueled the dot com surge. He added that Chinese
00:30deflation might temporarily drive markets higher by lowering interest rates, but would
00:34not prevent a correction. Edwards advised investors to stay nimble, favoring gold, value stocks
00:40and commodities over crowded momentum trades. For all things money, visit Benzinga.com.
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