Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Fear of a large-scale market bubble might be overblown, though certain pockets do exhibit bubble-like qualities, Goldman Sachs strategists said Friday.
Major indexes sit just below record highs as investors bet on vaccine distribution and additional stimulus to accelerate economic recovery. Yet still-elevated COVID-19 case counts and worsening economic data has led some clients to wonder whether stocks' valuations are unsustainable, the team led by David Kostin said in a note to clients.
Using the popular cyclically adjusted P/E ratio, or CAPE, the broader market's valuation isn't as low as many think, the strategists added. Recent rallies of stocks boasting negative earnings also spark concerns of a potential market bubble, the team added. Companies with negative long-term earnings have outpaced the average stock by 40 percentage points over the last 12 months, according to the bank. Elevated trading of negative earners has also been a "historical extreme."This actively-managed SPAC ETF amassed $60 million in assets within a month of launching.