Price-Action Is Bearish Even at Records: 3-Minutes MLIV

Summary

Mark Cudmore turns outright bearish on global stocks, citing disappointing price action despite record highs and a growing disconnect between the AI bubble and broader economic damage. He expects stagflation risks to weigh on equities and sees AI/semiconductor stocks as particularly vulnerable. The Iran deal is discussed as a potential temporary pop but not a game-changer.

• Global stocks are at record highs but price action is disappointing.
• Mark Cudmore shifts from grumpy to outright bearish on equities.
• The AI bubble is still in its inflationary stage but the broader economy is showing pain.
• Economic damage could drag down even high-flying AI and semiconductor stocks.
• A stagflation environment is expected due to the war and inflation.
• An Iran deal would provide a final pop in stocks, but the outlook remains negative.
• Central bank rate hikes are likely delayed but inflation remains problematic.
• The speaker sees three Iran scenarios, all bearish for stocks over time.