The stock has another 20% rise left in it before the bubble deflates, Capital Economics predicted.
That's because stocks tend to inflate rapidly right before the end of a bubble, the firm said.
AdvertisementInvestors on the lookout for signs of a bubble should expect the stock market to be pumped up by another 20% before correcting, Capital Economics researchers said.
According to John Higgins, Capital Economics' chief market economist, stocks look like they're in a late-stage bubble, meaning equities are in for a steep rally before the bubble eventually bursts.
I think that it's a simple one really that involves a bubble inflating in the stock market," he said, pointing to the excitement for big tech.
Persons:
—, John Higgins, There's, I'm, we've, Higgins, Bubbles
Organizations:
Capital Economics, Service, Capital, Dow Jones Industrial, Nasdaq