A ‘Very Young’ Bull Market in Stocks Is Still Minting Believers
- Equity exposure has yet to reach peak levels seen in the past
- Elevated valuation seen echoing start of previous bull markets
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They know about the stretched valuations and everything that must go right to keep stocks aloft. And yet rather than shy away from frothy markets, plenty of investors are only now jumping in.
The reason, it appears, is how far out of the market they had been prior to the latest and greatest leg of the runup, the one that began in March 2020. So long has it taken for risk appetites to recover, JPMorgan Chase & Co. research shows, that pushing it to the levels of past peaks could mean at least another 26% rally for the S&P 500.