'Companies are essentially failing': Experts warn of disturbing disparity between 'old' and 'new' stocks. How to cash in

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AI has exploded into being the predominant engine behind America’s GDP growth (1) and the stock market’s celebrated rally in 2026 (2), but while some investment pundits continue to endorse chip makers (3) and hyperscalers, others are warning of the collapse they believe will inevitably follow such speculative conditions.

JPMorgan Chase CEO Jamie Dimon, Mad Money host Jim Cramer, The Big Short inspiration Michael Burry and others have compared the high spirits of recent months to those felt just before the dot-com bubble burst and plunged the world into a paralyzing (although short-lived) recession at the turn of the millennium.

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We can add to this list of admonishers seasoned investment strategist Jim Paulsen, who has recently called attention to an unsettling trend in the S&P 500, going so far as to question “how sustainable a bull market is where so many (most!) companies are essentially failing (4).”

Or, in other words, the market now seems to award failure as well as success.