Oxford Economics: the US equity market is overvalued from all angles
U.S. equity market is overvalued by 16%, so a short position on the S&P 500 looks increasingly attractive, writes Oxford Economics strategist Daniel Grosvenor. In his opinion, even overbought bond market will not be able to keep the stock market at current levels achieved after taking off from the lows of March.
Over the past two weeks, a number of banks from JPMorgan and Bank of America to Alliance Bernstein and Morgan Stanley have warned of a market overvaluation of the U.S. stock market, as well as the threats posed to it by the deterioration of relations between the U.S. and China. Despite this, investors were able to push the S&P 500 above some important technical levels.
Firstly, it broke above the psychologically important 3000 points, and secondly, it broke through the 50, 100, and 200-day moving averages.
The Wall Street Journal reported that the percentage of asset managers who consider the U.S. stock market attractive has soared to a record value for the last almost five years. These are the data of the survey conducted by the Bank of America.