Bank of America strategist: U.S. stocks and cryptocurrencies are forming bubbles

Michael Hartnett, a strategist at Bank of America, said the strong rebound in U.S. stocks and cryptocurrencies makes these asset classes look like bubbles. According to data compiled by the agency, the price-to-book ratio of the S&P 500 soared to 5.3 times in 2024, close to the peak of 5.5 times reached at the peak of the technology bubble in March 2000. Hartnett said that if the S&P 500 approaches 6,666 points, which is about 10% higher than the current level, then the risk of "overshooting" in early 2025 is high. The bank's bull and bear market indicators have not yet shown signs of prosperity among global investors. (Jinshi)