Lates News

The strategist at Bank of America stated that there is still room for the past two years' rise in large US tech stocks and investors should position themselves to gain more returns. The Bank of America team led by Michael Hartnett studied 10 stock market bubbles since the early 20th century and found that during these extremely overvalued periods, there was an average increase of 244% from the bottom to the peak. The strategists pointed out in their report that this indicates that after a 223% rise from the March 2023 low, the seven tech giants still have room to rise. The strategists also stated that the current valuation levels support the view of further upside in this sector. Historical stock market bubbles usually end with a price-to-earnings ratio of 58 times, and currently these stocks are trading 29% above their 200-day moving average.