A Historic Gold Announcement Is About to Rock Wall Street

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Bank of America Foresees Possible 40% S&P 500 Plunge Due To Growth-Stock Bubble

Bibhu Pattnaik
February 16, 2025

Bank of America strategists are warning of a potential 40% crash in the S&P 500, attributing it to a growth-stock bubble.

What Happened: The bank’s strategists, earlier this week, drew a comparison between the current market scenario and the notorious “Nifty Fifty” and “dot-com” bubbles of the 1960s and late 1990s.

They highlighted the similarities between these periods and the present market, hinting at a possible impending fallout.

As per the report by Insider, the crux of the bank’s argument lies in the market’s concentration levels. The market cap of U.S. stocks is 3.3 standard deviations away from the historical average, when compared to the rest of the world. The top five stocks in the S&P 500 now make up 26.4% of the index.

Jared Woodard of Bank of America cited passive investing as a major factor for this market concentration. “Passive funds dominate with 54% market share,” Woodard stated. He cautioned that ignoring valuations and fundamentals could result in a significant risk during a bust cycle.

Also Read: JPMorgan, BofA, Equifax, And Others May Get Relief After CFPB Dissolution

Woodard’s predictions are in line with recent perspectives from strategists at other leading Wall Street banks. Both Mike Wilson of Morgan Stanley and David Kostin of Goldman Sachs have predicted a decade of flat returns for the S&P 500.

Despite the pessimistic forecast, the bank offered a strategy to evade a potential bear market. This involves monitoring the S&P 500 equal-weight index, investing in quality stocks with lesser exposure to the Magnificent Seven stocks, and diversifying holdings.

Why It Matters

Investors and market watchers have been increasingly concerned about the high concentration levels in the S&P 500. The dominance of a few stocks, often referred to as the ‘Magnificent Seven’, has raised questions about the overall health and stability of the market. This warning from Bank of America underscores these concerns and highlights the potential risks associated with a highly concentrated market.

The bank’s comparison of the current market situation with past market bubbles serves as a stark reminder of the potential consequences. The ‘Nifty Fifty’ and ‘dot-com’ bubbles led to significant market corrections and investor losses. The possibility of a similar fallout in the current scenario could have serious implications for investors.

While the bank’s strategy offers a potential way to navigate the situation, it underscores the need for careful investment strategies and risk management in the current market environment.

Read Next:

  • DeepSeek's Hedge Fund Owner Had Multiple Top Projects Before Creating The Firm That Fueled $1 Trillion Market Cap Erosion Of AI Stocks

Image: Shutterstock

Continue Reading...

Popular

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

These are the celebs who are attending Jeff Bezos’ Venice wedding

VENICE, Italy (AP) — arrived in Venice on Thursday, leading a star-studded guest list of celebrities descending on the lagoon city for the weekend wedding of Amazon founder Jeff Bezos and Lauren Sánchez.

Make This Move Before Nvidia's Critical Update (Unique Play) - Ad

Nvidia's CEO is about to say five simple words that could ignite the next explosive phase of the AI boom. It's not about tariffs or China--but it could change everything. This moment could define the biggest profit wave yet.

FDA requires updated warning about rare heart risk with COVID shots

WASHINGTON (AP) — said Wednesday it has expanded existing warnings on the two leading COVID-19 vaccines about a rare heart side effect mainly seen in young men.

Greenland has a message for the rest of the world: Come visit

NUUK, Greenland (AP) — has a message for the rest of the world: We’re waiting for you.

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Buffett's favorite market signal just hit its highest level in history-stocks are more overvalued than 1929. He's sitting on $325B in cash... and may be about to buy one overlooked gold miner. I've identified it-plus 4 others with up to 100X potential.

VC Insists Only '996' Culture Can Propel Toward Billion-Dollar Startups, But Reveals 'There Is Nuance'

Venture capitalist Harry Stebbings argues that founders who work 5 days a week won't lead a $10B company. He says 7-day weeks are necessary for AI dominance. Critics called it toxic, but others like Shark Tank's Kevin O'Leary and Google's Sergey Brin agree.

Trump vents online about service provider after conference call marred by glitch

WASHINGTON (AP) — On Monday afternoon, the president of the United States was just another person complaining online about his service provider.

Have You Seen this Strange Elon Musk Device? - Ad

Tech legend Jeff Brown predicts this "space technology" will be Elon Musk's next trillion-dollar business, and it will make a lot of people rich. This could be the biggest internet innovation since the first web browser Netscape kicked off the internet boom in the late 1990s.

Netflix's Squid Game Finale Takes Over Seoul With Massive Parade, Star-Studded Fan Event

Netflix celebrated the finale of Squid Game with a parade and fan event in Seoul, featuring characters and emotional reflections from cast.

Iran’s president orders country to suspend cooperation with UN nuclear watchdog IAEA

DUBAI, United Arab Emirates (AP) — Iran’s president on Wednesday ordered the country to suspend its cooperation with after American and Israeli airstrikes hit its most-important nuclear facilities, likely further limiting inspectors' ability to track Tehran's program that had been enriching uranium to near weapons-grade levels.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Trump Has 'Already Won' By Dodging Accountability In Fed Showdown, Says Apollo's Jim Zelter

According to Jim Zelter of Apollo Global Management, President Donald Trump has already set the stage for passing the blame.

What It's Really Like To Work With Elon... - Ad

A business partner of mine recently told me how one morning, Elon's "DOGE Agents" simply showed up. The whole departments were merged. Dozens of tasks and contracts were reassigned. Several projects were permanently shut down and replaced. That's when he called me, and I realized what was happening.

Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax

TORONTO (AP) — Canadian Prime Minister Mark Carney said late Sunday trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Ivy League MBA Was A 'Waste Of Time,' Says Veteran Banker, Lists Two Key Traits Far More Relevant In The AI Age

Standard Chartered CEO Bill Winters says his MBA was a waste of time, and today's leaders need curiosity and empathy, not just technical skills.

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

Trump's Crypto Ventures, Draper And Cathie Wood's Bitcoin Predictions, MSTR Estimates, And More: This Week In Crypto

The past week in the world of cryptocurrency was nothing short of eventful. From legislative moves aimed at curbing alleged corruption in cryptocurrency ventures to bold predictions about Bitcoin’s dominance, the week was filled with intriguing developments. Here’s a quick recap of the top stories that made headlines.

Bitcoin, Ethereum, XRP, Dogecoin Surge Ahead Of Independence Day

Cryptocurrency markets are surging heading into the holiday weekend, fueled by optimism around altcoin ETF approvals for 2025 and the impending ratification of the ‘Big Beautiful Bill.’

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Julian McMahon, Actor Who Played Doctor Doom In Fantastic Four Dies At 56

Julian McMahon, known for his roles in Fantastic Four and series like Charmed and Nip/Tuck, has passed away at 56 after battling cancer.

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Investors snap up growing share of US homes as traditional buyers struggle to afford one

LOS ANGELES (AP) — Real estate investors are snapping up a bigger share of U.S. homes on the market as rising prices and stubbornly high borrowing costs freeze out many other would-be homebuyers.

US brings charges in North Korean remote worker scheme that officials say funds weapons program

WASHINGTON (AP) — The Justice Department announced criminal charges Monday in connection with a scheme by North Korea to fund its weapons program through the salaries of remote information technology workers employed unwittingly by U.S. companies.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Apple Sues Ex-Engineer Over Alleged Theft Of Vision Pro Secrets As Snap Prepares AR Glasses Launch

Apple files lawsuit accusing former senior design engineer of stealing confidential information before leaving to work at Snap.

What to Stream: Ryan Coogler’s 'Sinners,' a Kesha album, 'SharkFest' and John Cena with Idris Elba

Kesha enjoying her freedom on her first new album since she left her old label and Ryan Coogler’s guts-spilling vampire film “Sinners,” are some of the new television, films, music and games near you.

Make This Move Before Nvidia's Critical Update (Unique Play) - Ad

Nvidia's CEO is about to say five simple words that could ignite the next explosive phase of the AI boom. It's not about tariffs or China--but it could change everything. This moment could define the biggest profit wave yet.

Lisa Murkowski Defends Alaska Carveouts As Elizabeth Warren, Bernie Sanders And Rand Paul Condemn Trump's 'Big Beautiful' Bill: 'Not Good Enough For The Rest Of Our Nation'

Senators across party lines are fiercely divided over Donald Trump's $3.3 trillion "Big Beautiful Bill," which narrowly passed the Senate and now heads to the House amid concerns over debt, tax cuts, and social program rollbacks.

Embed-chart-July Fourth-Pool Party Prices, ADVISORY

JULY FOURTH-POOL PARTY PRICES — chart. A market research company’s preliminary data shows that getting all the gear needed to host a pool party costs less than it has in years. This chart is current as of 07, 03, 2025 and will not update. Source: Numerator

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Buffett's favorite market signal just hit its highest level in history-stocks are more overvalued than 1929. He's sitting on $325B in cash... and may be about to buy one overlooked gold miner. I've identified it-plus 4 others with up to 100X potential.

How a GOP rift over tech regulation doomed a ban on state AI laws in Trump's tax bill

NEW YORK (AP) — A controversial bid to deter states from regulating artificial intelligence for a decade seemed on its way to passing as the championed by worked its way through the U.S. Senate.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright technicaltrading.org
Privacy Policy | Terms of Service