Top economist Mark Zandi warns the record-high stock market is detached from economic reality
NABE Mark Zandi is warning investors not to mistake a strong stock market for a strong economy. He said he believes that recent stock market momentum is largely speculative. Zandi still thinks the US economy is vulnerable to recession, even as stocks hover near records. Mark Zandi would like to remind you that the stock market is not the economy. Moody's top economist has been bearish on his outlook for the US this year, and he sees a disconnect forming between economic realities and a soaring stock market that's just closed out its best month since 2020. The S&P 500 ended Thursday's session above 7,200 for the first time ever. "Technology companies whose stock prices are driven by excitement over artificial intelligence account for almost half of the market's capitalization," Zandi wrote in a his latest newsletter. "The AI enthusiasm is operating on its own dynamic, independent of the war and everything else that is happening in the rest of the econ...
