Citigroup joined the bearish bandwagon. Citi’s co-head of investment banking, Manolo Falco, said that stock markets are “way ahead of reality.”
In May, the S&P 500 Index (NYSEARCA:SPY) closed in the green for the second consecutive month. In March 2020, the index fell 12.5%.
J.P. Morgan strategists have dialed back their bullishness on stocks due to rising US-China tensions. The tension could have a severe impact on stocks.
President Trump said that he will hold a news conference about China today. The move comes amid a growing rift between the world’s two biggest economies.
US stock markets closed with gains last week. The S&P 500 and the Dow Jones Index gained 3.2% and 3.3%, respectively.
The COVID-19 pandemic is a bigger economic challenge than a health challenge. There are ways to gauge the impact on the global and US economy.
The S&P 500 Index jumped 3.1% in Monday's trade. The index is less than 50 points short of the psychologically crucial 3,000 level.
Despite the crash in US stock markets from their all-time highs, many fund managers think that markets are currently overvalued.
Billionaire investor Stanley Druckenmiller isn't sold on the current stock market rally. He thinks that the stock market is overvalued.