Bank of America strategists: US stocks and cryptocurrencies are forming a bubble

ChainCatcher message, Bank of America strategist Michael Hartnett stated that the strong rebound in U.S. stocks and cryptocurrencies makes these asset classes appear to be in a bubble.

According to data compiled by institutions, the price-to-book ratio of the S&P 500 index soared to 5.3 times in 2024, close to the peak of 5.5 times reached during the tech bubble in March 2000. Hartnett noted that if the S&P 500 index approaches 6666 points, which is about 10% higher than current levels, the risk of "overshooting" in early 2025 is very high. The bank's bull-bear indicator has yet to show signs of prosperity among global investors.