AI Euphoria Driving Market Bubble? Sevens Report Co-Editor Warns
Tyler Richey compares tech rally to Looney Tunes—gravity may come next
US stocks soar to new highs as fears of bubble bursting rise
As U.S. stocks soar to record highs, Tyler Richey, co-editor at Sevens Report Research, warns the market may be approaching a bursting point.
“Every market bubble in modern history has had a narrative,” said Richey. “In 2000, it was the internet. In 2008, real estate. In 2025, it’s AI.” With NVIDIA’s market cap jumping $1.933 trillion since April, Richey likens the chip sector’s run to the Road Runner, while the S&P 500 plays Wile E. Coyote—suspended in midair, just before the fall.
He pointed to:
-
Multidecade extremes in relative strength
-
Technical imbalances across sectors
-
Bearish sentiment divergence despite index highs
“A downward force that the broader stock market could very well be on the brink of facing itself,” Richey warned.
Also, click here to view the full article published in S&P Global on July 31st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.
If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.
To strengthen your market knowledge take a free trial of The Sevens Report.
Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
