Equities across major markets hover around record highs, but strategists say many of the characteristics of a bubble or bear market are absent from global stocks, according to Bloomberg.

  • Strategists at Goldman Sachs Group Inc. in a report to clients say typical signs of systemic risks are not currently present. This includes leverage in the private sector and a collpade in savings.
  • “[T]he fundamental factors that drive the market and the early stage of the economic cycle would suggest that we are far away from a bubble or bear market,” the strategists said in their 46-page report “Bubble Puzzle.”
  • Strategists also noted that the rally is against the backdrop of market concentration in fast-growing companies that generate cash and transform their industry such as tech stocks.
  • European stocks rose last week to year-highs, even with the COVID-19 lockdowns and delayed vaccination rollout. Likewise, the S&P 500 rose to another record high.