Good morning The booming US stock market is making some people nervous, but maybe the Magnificent Seven aren't so expensive after all. Additionally, there is a big bet that the market calm and unstoppable crypto markets could score a victory in London. Here's what people are talking about. — Sofia Horta and Costa
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There is so much debate about whether the U.S. stock market is overheating that my colleagues Alexandra Semenova and Matt Turner dug into the data to find out what the evidence suggests. Some of their charts may allay bubble concerns, particularly one that shows an equal-weighted version of the S&P 500 just hit a record — an indication that the rally is not as concentrated as feared. JPMorgan's strategy team also weighed in, noting that the so-called Magnificent Seven stocks – a group that includes Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla – are actually cheaper relative to the market than before five years. Morgan Stanley's Michael Wilson, who has cast a bearish note on Wall Street, says the burden is now on improving earnings to support stock gains. Meanwhile, the Barclays team says investors should consider selling US Treasuries after an “excessive” rally. As I type, S&P 500 futures are about 0.4% lower while Treasuries are flat.
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