For much of the past few months, as BofA CIO Michael Hartnett warned repeatedly that US stocks are now extremely overvalued relative to non-US stocks (largely thanks to the mega AI bubble)...
... he was ignored: after all retail traders were riding the greatest momentum euphoria wave of all time (even bigger than the 2021 meme stonk mania), and it the only question was how much higher then next record high would be. Well, just one week after stocks hit their latest all time high, they have suffered the fastest 5-day drop since the covid crash and suddenly everyone is talking risk management... and how much lower can US stocks drop.
