'Lots Of Happy Bulls' Are Making This Wall Street Veteran Nervous: Signs That 'A Meltup Is Underway'
Portfolio Pulse from Piero Cingari
Wall Street veteran Ed Yardeni expresses concern over the current bull market's unchecked advance, citing excessive optimism and contrarian indicators suggesting an unsustainable peak. The Nasdaq 100 Index, tracked by Invesco QQQ Trust, has seen significant gains, as has Nvidia Corp., with its stock rising over 60% in the first two months of the year. Yardeni warns that the prevailing bullish sentiment and disregard for risk could lead to a market 'meltup', despite the positive economic indicators.
February 29, 2024 | 5:18 pm
News sentiment analysis
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NEGATIVE IMPACT
Nvidia Corp. has experienced a dramatic rise, over 60% in the first two months of the year, following a 240% growth in 2023, which may signal overexuberance in the market.
Nvidia's exceptional growth, highlighted by Yardeni, exemplifies the market's excessive optimism. This could indicate a short-term risk of correction due to overvaluation.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The Invesco QQQ Trust, tracking the Nasdaq 100 Index, has risen 28% since late October 2023, indicating strong market performance but raising concerns of overvaluation.
The significant gains of QQQ reflect the broader market euphoria that Yardeni warns could lead to a 'meltup', suggesting a potential short-term overvaluation risk.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80