Société Générale Strategist Warns of Dot-Com-Type Tech Bubble

Albert Edwards of Société Générale has warned that the tech sector may be in a bubble, as valuations soar and the industry swells to 37% of the U.S. stock market — surpassing the peak of the dot-com era. Rising bond yields will eventually halt the rally, he cautioned, William Edwards reported for Business Insider.

Edwards is a stark contrarian against Wall Street’s prevailing bullish mood. (Photo: Société Générale)

Edwards is known for his bearish outlooks, though they have often proven poor near-term market timing guides.

“An equity investor who heeded my words of caution on the U.S. Tech ‘bubble’ will by now have taken to sticking pins in plasticine models of me,” he wrote in an August 21 note to clients.

“Indeed, my ankle has been hurting for over six months and although the physio says it is tendonitis, I strongly suspect otherwise.”

Still, Edwards — a stark contrarian against Wall Street’s prevailing bullish mood — has raised red flags about where markets currently stand, particularly in tech and in relation to government bond yields.