Connect with us

Business

The bubble will inflate another 20% before bursting

The bubble will inflate another 20% before bursting

 


  • The stock has another 20% upside before the bubble bursts, Capital Economics predicted.
  • The research firm predicted the S&P 500 would hit 6,500 before staging a correction.
  • That's because stocks tend to inflate quickly just before a bubble ends, the company explained.

Investors watching for signs of a bubble should expect the stock market to rise another 20% before correcting, Capital Economics researchers said.

The research firm highlighted the latest rally in stocks, with the S&P 500 and Dow Jones Industrial Average recently posting new record highs and major indexes heading to new all-time highs as the week began Monday.

But investors trying to push the bull market higher should know that the market can only gain so much more. According to John Higgins, chief market economist at Capital Economics, stocks appear to be in a late bubble stage, meaning they are poised for a strong rally before the bubble bursts.

“There's always the temptation to chase the market higher, but I'm not convinced you should do that at this point. The story we told about a year ago seems to be coming true,” said Higgins. said in a recent podcast. “What is this story? I think it's a simple story that involves a bubble inflating in the stock market,” he said, noting the enthusiasm for big tech.

Wall Street's enthusiasm for AI mirrors the hype around Internet stocks in the 1990s, Higgins noted, which should bode well for the market. The Nasdaq Composite Index lost 77% between its peak and trough in the early 2000s, and the entire market saw its value disappear by $5 trillion in 2002.

It's “impossible” to predict when the bubble will finally burst, how far stocks will fall or what will trigger the correction, Higgins noted. But it could happen as soon as late next year, he suggested, because that would extend the pandemic bull market to about 5 years, the lifespan of the dot-com bubble.

He predicted that the S&P 500 could reach 6,500 by the end of 2025. That implies another 22% rise in stocks before the bubble begins to deflate.

“Bubbles tend to inflate the most in their final stages, when excitement peaks,” Higgins warned.

Other market commentators have warned stocks appear to be in a bubblewith stock prices having surpassed a series of record highs in 2024. More extreme forecasters have predicted that stocks could collapse as much as 65% as the hype around AI quickly dissipates.

Sources

1/ https://Google.com/

2/ https://markets.businessinsider.com/news/stocks/stock-market-crash-prediction-dot-com-bubble-correction-economy-recession-2024-5

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]