It’s Not A Stock Market Bubble. It’s “A Bubble Of Fear,“ Says JPMorgan

It’s Not A Stock Market Bubble. It’s “A Bubble Of Fear,“ Says JPMorgan

This is a BETA experience. You may opt-out by This week, JPMorgan JPM hosted a virtual meeting in which its top strategists went over the most important trends driving the stock market in 2021. Here are the key takeaways. The stock market is a little frothy around the edges“”but it's not a bubble. Let's begin with the most pressing question. Are we in a bubble? Despite growing fears, JPMorgan strategists think the stock market is not in a bubble. Quite the opposite, they are convinced the stock rally is just in the first innings“”and that it will rage on well into next year. Even so, they warn of bubbly pockets“”especially in sectors favored by individual investors. The good news is that the frothy part of the market is relatively small. And if there's a pull back, it likely won't drag down the rest of the market. "We do see some relatively contained market segments that appear to be in a bubble related to Electric Vehicles (EV), renewable energy and innovations stocks. These sectors only make up a small part of the market (e. g., electric vehicles make up only 2% of the S&P 500)," JPMorgan strategists said. On the flip