From meme stock rallies and sky-high call options to trillion-dollar tech valuations, signs of a new stock market bubble are flashing across Wall Street—and this time, the warnings are coming from nearly every corner of the financial world.
- NVDA stock has already rallied 30% this year: Check live chart here.
In a week packed with red flags, experts from Goldman Sachs, Bank of America, Yardeni Research, Apollo and JPMorgan have all pointed to levels of speculative activity, policy easing and market concentration that closely resemble the lead-up to past financial manias.
Goldman Sachs: Speculation Near Historic Extremes
Goldman Sachs analyst Ben Snider reported Friday that the firm’s Speculative Trading Indicator is now at its highest level outside of the 1999-2001 and 2020-2021 bubbles.
The surge is driven by an explosion in trading volumes for unprofitable stocks, penny stocks, and high-multiple tech names, alongside a 50% rally in a basket of retail trader favorites since April.
Goldman also flagged an extreme short squeeze in the most shorted stocks, with gains of over 60% in three months, a spike exceeded only by the blow-off tops of the dot-com and meme-stock eras.
“Speculative trading activity has also accompanied one of the sharpest short squeezes on record, another dynamic reminiscent …