Stocks hit record highs on fiscal deficits, not fundamentals, Lyn Alden says—CNBC interview

Macro analyst Lyn Alden told CNBC that major stock indices are hitting record highs not because of strong fundamentals but because large structural fiscal deficits are propping up asset prices. She argued central banks have limited tools to counter these fiscal-driven dynamics and that current inflation is not primarily from excess bank lending. Dedollarization risks are seen as overstated in the near term given the dollar's network effects, though longer‑term shifts could occur. Market impact: equity indices may remain elevated despite weak underlying fundamentals, suggesting investors face asymmetric risks if fiscal and energy pressures change the outlook.