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US stock market bubble may pop soon after Wall Street’s coronavirus bonanza, Bank of America warns



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The second-largest US lender, Bank of America, has warned that the “extreme rally” seen after the market crash triggered by the pandemic formed a bubble in asset prices, and it could be about to burst.

“DC’s policy bubble is fueling Wall St’s asset price bubble,” wrote a group of analysts at Bank of America led by Michael Hartnett, as quoted by Bloomberg.The analysts were referring to the US Federal Reserve’s (the Fed’s) monetary actions, as well as fiscal stimulus policies designed to mitigate the devastating impact of the pandemic. According to the bank’s predictions, …

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