Reported 1 day ago
According to Bank of America strategist Michael Hartnett, current U.S. stock valuations are reminiscent of the Dotcom bubble, with the S&P 500's price-to-book ratio reaching 5.3, exceeding levels last seen in March 2000. Hartnett cautions that while there are factors suggesting the market may differ from the 1990s tech boom, such as AI growth and global rebalancing, hopes of impending Federal Reserve rate cuts could weaken the U.S. dollar. With the Fed poised to possibly join the rate cut trend, investors could gravitate towards bonds and international stocks if market conditions do not change.
Source: YAHOO