Dollar Bear Market and U.S. Stock Bubble

Wallstreetcn
2025.08.18 00:30
portai
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BoA's Hartnett analysis points out that the dollar bear market and the U.S. stock bubble are key themes for future investments. The U.S. government needs to experience 25/26 years of prosperity to reverse the trends of debt and deficits. Global investors are avoiding long-term government debt and turning to overvalued stocks and credit bonds. The dynamic price-to-earnings ratio of the S&P 500 index is 22.5 times, the static price-to-earnings ratio is 27.4 times, the dynamic price-to-earnings ratio of the MSCI index is 14.7 times, and the spread of U.S. IG A+ credit bonds is 64 basis points