JPMorgan Sees ‘Froth’ in US Stocks, While Goldman Says Rally Justified
- Marko Kolanovic warns equities, Bitcoin prices rising too fast
- Goldman’s Kostin says valuations supported by fundamentals
The JPMorgan Chase & Co. headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
The sharp rally in US stocks this year has left strategists at JPMorgan Chase & Co. and Goldman Sachs Group Inc. divided about whether a market bubble is forming.
To JPMorgan’s chief market strategist Marko Kolanovic, the dramatic rally in US equities and Bitcoin’s quick surge above the $60,000 mark signal yes. He sees those advances as indicative of accumulating froth in the market — conditions that typically precede a bubble when asset prices rise at an unsustainable pace.