AI fundamentals have become detached from their stock prices: Michael Green

• Market earnings growth is narrow, driven by leading chip/AI/software companies, with some valuations deemed 'totally absurd' due to mark-ups like Google's Anthropic position.
• George Soros's reflexivity theory is evident, where strong equity prices enable financing for companies like Nvidia, creating artificial shortages.
• Leveraged ETFs (e.g., SOXL) are creating 'endogenous flows' and enhancing volatility, posing risks to market stability and credit underwriting, especially for chip stocks.

Michael Green argues that current market gains are narrowly driven by a few tech/AI companies, with valuations detached from true fundamentals due to 'reflexivity' and debt financing based on inflated market caps. He warns of significant risks from leveraged ETFs creating artificial market flows and potential refinancing issues if market capitalizations decline.