This is America’s ‘fatal flaw’ as the US bubble gets ready to pop, market expert warns

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how the bubble of U.S. outperformance versus the rest of the world will pop.

While Wall Street bulls point to strong earnings, Sharma said the record is less impressive after adjusting for government spending and the handful of tech giants with massive valuations, adding that “supernormal profits” tend to return to normal amid competition.

“Growth and profits are also getting an artificial lift from the heaviest deficit spending ever recorded at this stage of an economic cycle, by far,

https://fortune.com/2024/12/22/mother-of-all-bubbles-us-debt-deficits-fatal-flaw-growth-earnings/

 

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