A $1-trillion buying spree lets S&P 500 brush off bear warnings business-standard.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from business-standard.com Daily Mail and Mail on Sunday newspapers.
Stocks are overextended by many measures as they sit near highs.
Sven Henrich, the founder of NorthmanTrader, said in a recent note that a reckoning is coming.
His call comes as Wall Street becomes more cautious in their market outlooks.
The evidence is overwhelming for Sven Henrich: we are in a stock-market bubble.
Henrich, the founder of NorthmanTrader, just has too look at any number of indicators to arrive at that conclusion.
Market cap-to-GDP, a valuation indicator that Warren Buffett popularized, is at all-time-highs, way above levels seen during the dot-come bubble. NorthmanTrader
More than 95% of S&P 500 stocks are above their 200-day moving averages a sign that regardless of the market s day-to-day noise and temporary setbacks, these stocks are in solid uptrends.
OECD Believes Biden Stimulus Will Boost World GDP zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.
That s the most recent advice from Morgan Stanley s Chief US Equity Strategist Mike Wilson.
Wilson is keeping his price target for the S&P 500 at 3,900 about 1% below the index s closing price on Monday even though he expects the pace of the economy s recovery to remain strong. Ellen Zentner, his firm s chief US economist, recently raised her forecast for 2021 US GDP to 7.6% from 6.6% because of the large fiscal stimulus that s expected in the form of checks to Americans.
So what gives, and why isn t Wilson following suit with a price-target hike? The S&P 500 index has already priced in much of the expected economic gains for the months ahead, he says.