Lyon Cobman says we have reached the Taurus market stage that Warren Buffett warned

The investor has long believed Lyon Cobman that we are in the late roles of the bull market where bubbles can form and risk, a stage of the cycle warned by Warren Buffett.

The head and CEO of the Omega family office read a quote from “Oracle of Omaha” on CNBC’s “Money engine “ Wednesday, which he said is compatible with what he sees now.

“Once the market starts the bull, and as soon as you reach the point where everyone earns money regardless of the system he followed, the crowd is attracted to the game that does not respond to interest rates and profits, but simply to the fact that it seems wrong to be out of the stocks,” Pavit said in 1999. Fortune magazine article.

Bavite believes that the bulls are often ended not only when extending the assessments, but also when there is an irrational enthusiasm and when the gathering is fed with momentum.

“This is what is happening now,” said Cobman, adding that the mood of investors is very similar and the evaluation of artificial intelligence companies, “highly ridiculed.”

The S&P 500 has increased around 40 % since its lowest levels in April, and returned to its highest levels ever. This gathering led the major technology giants, which invested billions of dollars in artificial intelligence and is rich in the capabilities of this emerging era.

The famous Buffett Index – the total American market value of GDP – also diluted one of the clearest signs of abundance in the market. The scale sits in record levels Much higher than the peaks reached during the Dotcom bubble as well as the epidemic era in 2021, indicating that stock prices are traveling before the basic economy. By 217 %, it exceeds the level level that Buffett once said is “playing with fire.”

While Cobman believes that stocks can be risky with the crowd’s behavior in the late cycle, it hates government bonds more due to high inflation. The bonds pay a fixed nominal benefit, so the higher inflation leads to the erosion of their true returns.

“The stocks are less dangerous than bonds at these levels,” he said.