U.S. STOCKS IN A BUBBLE, HEDGE FUND EXEC WON’T SAY WHEN IT WILL BURST

The V-shaped recovery in the stock market is gathering serious momentum. The S&P 500 is now 75% higher than its low point last March. The Nasdaq has more than doubled since its pandemic low. Tesla shares are up a staggering 900% over that span. And an army of traders on Reddit were able to send GameStop to the moon, at least for a few days.

Although there is good reason for optimism about the economy and the pandemic, some fear the market euphoria is getting out of hand -- yet it's impossible to time the bubble's burst, Matt Egan wrote for CNN Business.

"I do think we are in a bubble like we were in 2000," veteran hedge fund manager Mark Yusko told CNN Business. "That doesn't mean that tomorrow the market is going to crash." Yusko, the CEO of Morgan Creek Capital Management, pointed to signs of extreme market speculation, such as the 1,625% spike for GameStop in January.

"Equity markets broadly are in bubble territory. Look at the parabolic moves by a number of companies like Tesla," he said.

Tesla shares gained another 2% Monday after the company announced it is investing $1.5 billion in bitcoin and will begin accepting the cryptocurrency for payment.

Yusko also pointed to how Apple's (AAPL) annual net income has barely budged over the past five years. But per-share earnings, which drive share prices, have climbed sharply because the iPhone maker has aggressively repurchased its shares.

"That's just financial engineering," he said.

Another exhibit in Yusko's bubble case is Snowflake.

The money-losing cloud computing company, which went public in September, is trading at 327 times revenue, according to data provider Refinitiv.

That's well above what even Zoom (ZM) and DocuSign (DOCU) trade at.

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