Bank of America Strategist: U.S. stocks and cryptocurrencies are forming a bubble
On December 6, Bank of America strategist Michael Hartnett stated that the strong rebound in U.S. stocks and cryptocurrencies makes these asset classes appear to be in a bubble. According to data compiled by institutions, the price-to-book ratio of the S&P 500 index soared to 5.3 times in 2024, close to the peak of 5.5 times reached during the tech bubble peak in March 2000. Hartnett said that if the S&P 500 index approaches 6666 points, about 10% higher than its current level, then there is a high risk of "over-adjustment" at the beginning of 2025. The bank's bull-bear market indicator has not yet shown signs of prosperity among global investors.
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