TECH - No Stock Market Bubble In Sight: 'Precisely The Same Level As In 1995' Not Dot-Com Crash Says Analyst | Benzinga
Good times for the market are often celebrated by investors. But when tailwinds are long-lasting, a question begins to creep up: are we in a bubble?
The S&P 500 has experienced a remarkable run in recent months, led by substantial growth stemming from the tech sector. Since the start of the year, the index has repeatedly closed at historic highs, beating the latest record last week. The index is up over 32% in the past year.
Last week, Bank of America analysts raised the S&P 500's one-year price target from 5000 to 5400, raising the expected growth by 5%. The analysts are expecting the index to yield 13% in the coming 12 months, yet they warned that the sustained growth could be preceded by a pull-back in the near term.
Analyst Savita Subramanian explained in a note, release on Monday, that following last week's price target correction, her team received pushback from investors and colleagues who "see the market is trading in bubble-like territory", and think it's time for "something else to break from the Fed’s aggressive monetary policy."
The upcoming release of inflation data for February, set for Tuesday of this week, will likely be the final piece of information that the agency will use to decide if interest rates should be lowered at its next FOMC meeting later this month.
Voices claiming that a full market bubble-burst is nearing ...