Bank of America says growth stocks are in a bubble exceeding the 'dot-com' and 'nifty fifty' eras [View all]
— and warns they could take the S&P 500 down 40%.
If you listen closely enough, amid all the investors cheering on AI, echoes of some of the great bubbles in history are starting to reverberate through the narrow canyon of skyscrapers on Wall Street.
That's the warning Bank of America strategists issued to clients in a note earlier this week.
As investors continue to pile into growth stocks, sometimes passively, the market has started to resemble the so-called "Nifty Fifty" and "dot-com" bubbles in the 1960s and late 1990s, respectively, the bank said. And while stocks could still rise in the near-term, outcomes after those famous bubble periods suggest trouble could be coming.
https://www.businessinsider.com/stock-market-crash-growth-bubble-ai-dotcom-nifty-fifty-sp500-2025-2
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