Stock-Market Rally Is Built on Narrative That’s Loaded With Risk
A trader works on the floor at the New York Stock Exchange.
Photographer: Michael Nagle/BloombergTakeaways by Bloomberg AISubscribe
Bullish sentiment toward stocks is rampant in the US, as one Wall Street strategist after another raises their target for an S&P 500 Index that is repeatedly setting new records.
Yet as optimism about further gains has solidified into something resembling a consensus, even the most bullish are clear-eyed about a growing list of issues that could potentially stop the party. With valuations at among the richest levels of this century, the most commonly cited risks for a hard market landing include cracks emerging in the artificial-intelligence theme, percolating damage from President Donald Trump’s trade war, swelling government debt loads and a weakening labor market.
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