Johannes Eisele/AFP via Getty ImagesUBS says a looser monetary policy from the Fed would fuel a stock market bubble. Six of the seven components of a market bubble are present, UBS said.UBS sees a 35% chance of a bubble forming in 2025, and highlights 5 stocks to buy to hedge risks.A laid back US central bank is the missing ingredient for a stock market bubble, according to analysts at UBS.Strategists led by Andrew Garthwaite of UBS Investment Bank said that of the seven conditions required for a stock market bubble to form, six have already been met.Those six thing include the end of a structural bull market, profits that are under pressure, a loss of market breadth, a gap of 25 years from the previous bubble, participation among retail investors, and a prevailing sentiment among investors that "this time is different."The last remaining condition for a bubble is loose monetary policy, according to the note, and with the Federal Reserve keeping interest rates at restrictive levels after Wednesday's 25-basis point interest rate cut, that requirement doesn't look likely to be met soon.
The Fed Is The Only Thing Standing Between Investors And A Full-blown Stock Bubble, Ubs Says
mfox@businessinsider.com (Matthew Fox), Business Insider
Thu, 12/19/2024 - 1:31pm
Topics: johannes eisele/afp getty imagesubs andrew garthwaite investment bank federal reserve s&p gen ai tsmc meta national grid pg&e vistra business insider fed ubs garthwaite investors stock bubble market interest rate monetary rates include form forming chance buy eventually sees policy conditions missing adding ingredient funds hedge wednesday
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12/30/2024 - 4:47 am | View Link - The Fed is the only thing standing between investors and a full-blown stock bubble, UBS says
A laid back US central bank is the missing ingredient for a stock market bubble ... a gap of 25 years from the previous bubble, participation among retail investors, and a prevailing sentiment among ...
12/19/2024 - 8:25 am | View Link - More
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