Memo From the Chief Economist

Memo From the Chief Economist

This Bubble Is Double Trouble

We are in a classic equity bubble, with the market fueled primarily by leverage, sentiment, and momentum.

David Rosenberg's avatar
David Rosenberg
Sep 22, 2025
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Key Takeaways

  • Markets are pricing in unsustainably high levels of future EPS growth, with the equity market running on extremely bullish sentiment

  • Leverage and concentration are classic bubble indicators that are blinking red

  • Households are highly exposed to the equity market, especially the baby boomer generation

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