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The US labour market won’t burst this stock market bubble

One of the key differences between the latter stages of the dotcom bubble and the current AI equity bubble is the state of the US labour market. This is important because, even though the unemployment rate dropped back to 4.4% last month, the labour market is far less tight today than it was back in 1999. It is therefore not set to prompt the much tighter monetary policy that arguably broke the stock market’s back in 2000.

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