Jan 08, 2019 23:36 (IST)
"The American stock market has done so well compared to the rest of the world that the stock market today is at a 100 year high relative to other countries," says Ruchir Sharma.
"This tells you how well America has done in the past decade but now I think as interest rates in American are going up, the fact that the American economy today is already in the midst of its second longest economic expansion in history.
"And if the American economy continues to grow to middle of 2019, it will become the longest economic expansion in its entire history.
"It has been a great streak. First we have to acknowledge that but there are signs that this is beginning to fray.
"A lot of excesses are beginning to build up out here, there is too much corporate debt in America. The fact that the American stock market compared to the rest of the world is much more expensive, the fact that the US dollar is so expensive which is beginning to hurt its exports and also its manufacturing sector. So I think there is a natural feedback mechanism and that is what I am concerned about," he says.
