Bank of America renews its warnings from a stock bubble

Strategists at Bank of America have warned about the growing risk of a bubble in stock markets, in a global tendency to facilitate monetary policy in collaboration with the mitigation of financial regulatory restrictions. The strategy team led by Michael Hartnet indicated that the global interest rate has fallen from 4.8% to 4.4% over the past year, due to the reduction of borrowing costs by central banks in the United States, Britain, Europe and China. This rate is expected to drop to 3.9%over the next 12 months. Parallel studies organizational authorities in the United States amendments aimed at increasing the share of individual investors in the market. “The higher the participation of individuals, the higher liquidity, the increased fluctuations and the bubble possibilities aggravate.” Hartnet expected the global equity performance over its US peer this year. He also warned last December that the markets were starting to look “excessive rising” in 2024, and it fell due to indicators such as ‘S&B 500’ with an 18% rate before the increase in April. He repeated his warning in June, saying that the reduction of the expected interest shares could push to enter the bubble stage. You may also be interested in: “Bank of America” warn against a bubble in US stocks and encrypted currencies, the stock bubble. US stocks have seen a standard height wave being driven by the optimism of investors regarding the resilience of economic growth and corporate profitability despite the increase in customs duties. However, the standard “S & B500” still holds behind its international peers this year. On the other hand, some analysts such as Michael Wilson of “Morgan Stanley” were optimistic about the ongoing positive momentum of shares, based on the power of profits, high operating margins and providing cash tax. But analysts of JP Morgan and UPS have warned that the market is still ignoring the commercial risks that still exist. The investor’s focus is expected to the Federal Reserve next week, looking for indicators on the rate of interest rates.