Wall Street strategists say stocks could keep rising from records
Since the federal reserve defined the first rate of the year, some strategists described the short -term “honeymoon rally” as the short -term “honeymoon rally”.
The optimism around the easier financial conditions and the explosion of artificial intelligence further strengthened their stocks and challenged their reputation as a weak month for the shares of September.
Bank of America strategist Michael Hartnett, as a note to customers, this is a bubble may not be ready to explode, he said. The team examined more than a century and found that past bubbles typically made an average of 244% gain from the groove to the top. With this measure, “Great seven” Since the lowest levels of March 2023, it has increased by 223%, it can still be a place to climb.
This view was strengthened by Jeff Krumpelman, the chief investment strategist of Mariner Wealth Advisors, who argues that AI -oriented productivity gains and strong gain expectations justify higher floors.
“We are in Inning too early [of AI]”Krumpelman told Yahoo Finance.
Krimpelman argued that the valuation of the S&P 500s (^GSPC) is high compared to historical standards, but that the comparisons with past cycles did not tell the whole story.
“This is not the S&P 500 of your grandfather,” he said. “Equality and profit margins were much lower when we were not so low. [oriented] These communication services and technology growth names. “
Nevertheless, he warned against overheating: “What will worry about me is a real ‘melt’ on the federal reserve rate deductions of people and carries us to even higher levels. This makes me angry.”
This discomfort is shared by other market veterans.
Ed Yardeni, the President of the Research, warned that the easier monetary policy could recently trigger an unstable rally in stocks without dealing with structural problems such as labor supply shortage. The discontinuation of the rates of a healthy economy, rather than fundamentally, argued that the risk that increases the speculative surplus directed by the investor FOMO rather than fundamental, especially the species that results in sharp corrections.
John Hancock Investment Management Common Investment Strategist Emily Roland described the current environment as unusual positive but fragile.
On Thursday, Yahoo Finance, the market “is currently a selective hearing,” he said.
