Ausbiz: Investor FOMO, U.S. debt & the resilience in the U.S. economy

Sam Ruiz, Equity Portfolio Specialist, attributes the U.S. market’s recent rise to increased government spending and a growing fiscal deficit, which boosts current liquidity but poses future risks. Sam highlights a “two-speed” market, with speculative AI stocks and names like Coinbase and Robin Hood soaring since April 2025, echoing 2021’s meme-stock rally. Ruiz warns of “FOMO bubble” behaviour and cautions that rising deficits—approaching 7%—and potentially reaccelerating inflation may threaten stability in the U.S. economy. However, credit markets and unemployment remain healthy, with opportunities emerging in real economy stocks, especially those benefiting from new capital expenditure policies and potential banking deregulation.