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The Business Insider: The Money Game The historically expensive S&P 500 could be seeing a loss of reopening optimism, Bank of America says
  • The shrinking premium of stay-at-home stocks over business-as-usual firms could mean the end of the S&P 500's reopening enthusiasm, Bank of America said Monday.
  • Quarantine plays including Zoom and FedEx commanded a 40% premium in March over firms slammed by the coronavirus pandemic. The market has since split the difference between the premium's pre-outbreak discount and March's peak.
  • "We think the market could be pausing, just like Texas and a few other states, in reopening optimism," the team led by Savita Subramanian wrote in a note to clients.
  • Such a halt would endanger the S&P 500's historically expensive valuation. The index is statistically expensive by all 18 metrics used by the analysts apart from equity risk premium and free cash flow.
  • Visit the Business Insider homepage for more stories.

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