David Rosenberg, a prominent U.S. economist and president of Rosenberg Research, has revised his bearish view on the U.S. stock market following a robust rally. While not conceding entirely, Rosenberg acknowledges the AI-driven tech surge is prompting a reevaluation of market valuations.
Historically, Rosenberg has highlighted extreme market valuations compared to past levels. However, he now suggests that if AI unleashes a productivity wave, such valuations might be justified. BlackRock shares this view, noting the fundamental changes in the tech-led U.S. economy.
Rosenberg believes investors are focusing on long-term prospects, suggesting traditional valuation methods may be outdated. Despite potential bubbles, he notes that the market's current momentum, fueled by companies like NVIDIA, may persist longer than anticipated.
