Stock Market Wild? Sell, Hold Cash, Buy AI

Yves Lamoureux Pulls Back From Extreme Optimism as Market Frenzy Grows

The relentless rally in U.S. stocks has prompted market forecaster Yves Lamoureux, president of Lamoureux & Co., to shift from “extremely bullish” to neutral on equities — a sharp change in tone he attributes to what he sees as speculative excess.

“This rally happened far too fast,” Lamoureux told MarketWatch. “I’ve been calling for 50,000 on the Dow by 2027, but we’re already near 46,000. Doing in two months what should’ve taken a year is a sign of gambling, not healthy investing.”

Lamoureux likens today’s mood to 2021, with meme-stock surges and record trading in ultra-short-dated options fueling risk-taking. He believes the market could now be entering a “topping process,” potentially moving sideways for two to three years rather than breaking higher.

His advice to investors: start scaling back positions and build cash reserves — not by selling everything at once, but by trimming gradually on strength and redeploying on pullbacks.

Looking further ahead, Lamoureux warns of rising inflation pressures by 2026–2027, which could keep interest rates elevated and push 10-year Treasury yields toward 6%. He points to corporate debt loads and new costs, such as global greenhouse gas fees on shipping, as additional headwinds.

Even with his cautious stance, Lamoureux remains bullish on select tech names with strong cash positions. He highlights Dutch AI infrastructure company Nebius Group, calling it one of the best “pure plays” on artificial intelligence thanks to its portfolio of AI-related holdings, including database firm ClickHouse.