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<ul class="summary-list"><li>BlackRock's Rick Rieder says there are "no sellers" in the equity market.</li><li>Stocks will keep rising despite soaring market valuations, he told Yahoo Finance.</li></ul>Even with stock-market valuations hovering <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-crazy-town-valuation-mania-sp500-barry-bannister-2024-11">near generational highs</a>, BlackRock's bond chief highlighted one key reason why stocks can continue higher."There's no sellers," Rick Rieder — the firm's global CIO of fixed income — said at a <a target="_blank" href="https://www.youtube.com/watch?v=Yjz_kTaO5pA">Yahoo Finance conference</a>.On the buying side, momentum is abundant, even as the prospect of persistently high interest rates boosts the appeal of the money-market funds."You think about the amount of money that comes into 401(k)s, wealth, salary — X percent goes into equities, and there's no sellers," he said.Rieder added that corporate buybacks are also backstopping stock market prices. Big companies have bought a trillion dollars worth of their own shares, he noted, shrinking the equity supply and pushing per-share values higher."So you shrink the denominator because they're buying back a bunch of their stock, and there's no sellers," Rieder said.He sees this more than offsetting any valuation pressures, even with one S&amp;P 500 adjusted-earnings ratio close to the highest it's been in the last century, according to new research from Deutsche Bank.And although Rieder sees current valuations as stretched, he added that market multiples could return to reasonable levels if earnings rise significantly higher."People want — myself included — want the multiple lower. But boy, it's pretty hard," he said. "If there's no egregious piece of news, geopolitical, et cetera, the natural migration is to higher prices."To be sure, Rieder himself has <a target="_blank" href="https://www.businessinsider.com/trump-us-debt-levels-government-borrowing-treasury-blackrock-rick-rieder-2024-11">previously noted impending risks</a>, previously forecasting that US debt could lead to a market shakeup. But this won't be an immediate threat."I think markets tend to react to the shark closest to the boat," Rieder said last week. "The shark on the debt dynamic is not going to be next to the boat in January or February, but it is going to get next to the boat sometime. I don't know if it's the latter part of 2025 or the beginning of 2026 unless they address the size of the spending dynamics, the amount of debt we're issuing, and, then obviously, inflation relative to that."

BlackRock's bond chief explains why stocks will keep charging higher despite stretched valuations

<ul class="summary-list"><li>Stock market valuations are near generational highs, Stifel's Barry Bannister says.</li><li>Bannister predicts the S&amp;P 500 could rise to the low-6,000s before plummeting back down.</li></ul>The stock market is "entering Crazy Town" as valuations creep toward generational highs, Stifel's chief equity strategist Barry Bannister said on Thursday.His comments come a day after the stock market soared to record highs <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-election-win-stock-market-today-record-high-sp500-dow-2024-11">following Donald Trump's election win,</a> with the <a target="_blank" class="" href="https://markets.businessinsider.com/index/dow_jones">Dow Jones</a> surging more than 1,500 points and the <a target="_blank" class="" href="https://markets.businessinsider.com/index/nasdaq_100">Nasdaq</a> gaining nearly 3%.Bannister said current market valuations are pricing in an incredibly optimistic scenario that could lead to disappointment for investors."Even allowing for the best-case scenario of a U.S. soft landing, and despite a potential ramp higher for U.S. fiscal spending, as well as China global cyclical stimulus and lastly a geopolitical 'reckoning', the S&amp;P 500 is a mania, nearing a 3-generation valuation high," Bannister said.Bannister added that while he expects the <a target="_blank" class="" href="https://markets.businessinsider.com/index/s&amp;p_500">S&amp;P 500</a> to reach "the low-6,000s" in the short term, such a move higher would result in valuations hitting 80-year highs, as measured by the cyclically adjusted S&amp;P 500 CAPE earnings yield."The Earnings Yield (EPS/Price) is near the 3% low for the entire post-WW2 (since 1945) 3-generation period," Bannister said.According to Bannister, the extreme overvaluation suggests that even if the S&amp;P 500 continues to rise a few percentage points to the low 6,000s in the short term, it is ripe for a 1,000-point decline, or about 13%, within a year or so."If S&amp;P 500 tracks a century of manias it pops to low-6,000s in 4Q24 then round-trips to ~5,250 fair value" by early 2026, Bannister said.The S&amp;P 500 traded at 5,965 Thursday afternoon.Ultimately, Bannister believes that current stock market sentiment is nearing the point that typically marks the end of a bull expansion. Quoting the famed British investor Sir John Templeton, he added:"Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria."

The stock market is entering 'Crazy Town' as valuations reach generational high, Stifel says

<ul class="summary-list"><li>Trump Media's market value has eclipsed the latest valuation of Elon Musk's X.</li><li>X's valuation is hard to assess as it is a private company, but Fidelity's updates provide a clue. </li></ul>Truth Social parent company <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/djt-stock?utm_medium=ingest&amp;utm_source=markets">Trump Media and Technology Group</a> could now be worth more than Elon Musk's X, the biggest competitor of the former president's social media site. Shares of Trump Media have soared 333% since its late-September low, catapulting its valuation to $10.6 billion on Tuesday, according to data from YCharts.That's higher than Fidelity Investment's most recent estimated valuation of X at $9.4 billion. Fidelity, which owns a stake in X, updates its valuation estimate of the social media platform periodically.As of August 31, the investment giant valued its stake in the social media platform at $4.2 million, down 79% from when its stake was worth $19.7 million in 2022 when Musk took the company private at a $44 billion valuation.Trump Media's $10.6 billion valuation also makes it more valuable than <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/nyt-stock?utm_medium=ingest&amp;utm_source=markets">The New York Times</a>, which is worth about $9.2 billion.Trump Media's soaring valuation is less based on fundamentals and instead <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/donald-trump-trade-rally-betting-markets-kamala-harris-bitcoin-djt-2024-10">related to Donald Trump's odds of winning</a> the Presidential election on November 5. The stock embarked on a <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-media-djt-truth-social-election-madison-square-garden-rally-2024-10">meme-like rally</a> following the president's event at Madison Square Garden in New York City. Trading in the shares was halted several times for volatility on Tuesday. According to its 10-Q filings with the SEC, in the first half of 2024, Trump Media generated $344 million in losses on $1.6 million in revenue.But investors are buying the stock regardless, and Trump is benefiting.According to Bloomberg data, his net worth nearly doubled in the past few months to more than $8 billion, mostly driven by the rise in Trump Media stock.Trump owns nearly 115 million shares of the company worth about $6.2 billion on Tuesday.

Truth Social has eclipsed the latest valuation of Elon Musk's X after Trump Media stock surges

<ul class="summary-list"><li>Nvidia stock surged over 3% to near-record highs on Monday as excitement builds for its Blackwell GPU.</li><li>The Blackwell GPU's pricing of about $500,000 has eased concerns about Nvidia's margins.</li></ul><a target="_blank" class="" href="https://markets.businessinsider.com/stocks/nvda-stock">Nvidia</a> stock jumped more than 3% on Monday to near-record highs as investor excitement around the chipmaker's upcoming Blackwell GPU product cycle grows.Shares of Nvidia hit an intra-day high of $139.41, less than 1% below the all-time high price of $140.76, which was reached in mid-June.The stock is trading at a forward price-to-earnings multiple of about 35x, which is below its three-year and five-year averages, suggesting that the stock isn't grossly overvalued, according to Citi.Monday's gain came amid a wave of Wall Street research reports on Nvidia, along with pricing details for Nvidia's next-generation GPU chip.The <a target="_blank" class="" href="https://wccftech.com/nvidia-blackwell-dgx-b200-price-half-a-million-dollars-top-of-the-line-ai-hardware/#:~:text=NVIDIA's%20DGX%20B200%20%22Blackwell%22%20AI,a%20rather%20astonishing%20price%20tag.">initial list prices</a> for Nvidia's Blackwell GPU chip were around $500,000, which <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/wfc-stock">Wells Fargo</a> called an "incremental positive" in a note on Monday."We do think the 40%+ higher pricing of the DGX B200 vs DGX H100 systems could be considered higher than expectations," Wells Fargo analyst Aaron Rakers said, adding that the pricing should ease investor concerns about Nvidia's gross margin dynamics.The release of Nvidia's next-generation AI-enabling GPU chip comes at a time when cloud hyperscalers, including <a target="_blank" href="https://markets.businessinsider.com/stocks/msft-stock">Microsoft</a>, <a target="_blank" href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a>, and <a target="_blank" href="https://markets.businessinsider.com/stocks/googl-stock">Alphabet</a>, are in an "AI arms race," according to Bank of America."Capex estimates continued to rise: since March, for every $1 of upward revision in 2024 sales estimates for hyperscalers, there was $19 of upward revision in capex estimates," <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/bac-stock">Bank of America</a> said in a Monday note.In a note on Friday, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/gs-stock">Goldman Sachs</a> increased its Nvidia price target to $150 from $135, arguing that the company's competitive moat is only getting stronger.Nvidia's competitive moat is centered on its large installed base, "which, in turn, fuels the virtuous positive cycle that entails more developers," Goldman Sachs said.Additionally, Nvidia's "ability to innovate not just at the chip level but at the data center level" is a competitive advantage for the company, along with its "robust and growing software offerings," Goldman Sachs said.And as for the potential looming competition from custom silicon chips being developed internally by Nvidia's largest customers, known as ASICS, <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/c-stock">Citi</a> isn't too worried about them."Nvidia still king," Citi said in its note on Monday."Due to the limitations in the hardware use cases, building custom silicon may be only suited for large hyperscalers. That nevertheless does not take away from the need for GPUs in both training and inference as GPUs remain at the forefront of performance benchmarks and offer the ability to grow one's AI infrastructure at scale," Citi said.Investors will be closely watching Nvidia's upcoming third-quarter earnings release in late November for clues about the progress of its Blackwell chip launch.

Nvidia stock tests record highs as Wall Street defends chipmaker's valuation amid 'AI arms race'

Foreign investors have withdrawn nearly Rs 20,000 crore from Indian stock markets in just five trading days (November 4–8), continuing a trend of large-scale selling that began last month. Experts say investors are now moving their money to China, largely due to the high valuations presently prevailing in Indian markets. In early November, FPIs have offloaded as much as Rs 19,994 crore in Indian markets. The month prior, i.e., October, was one of the worst months in terms of foreign outflows, with FPIs making a net withdrawal of Rs 94,017 crore. Before this, Indian markets faced such a situation during the pandemic, when FPIs withdrew Rs 61,973 crore from equities in March 2020. <h2>Why Are Investors Leaving? </h2>According to Himanshu Srivastava of Morningstar Investment Research India, two main factors are driving this exodus. First is China's renewed appeal due to lower stock valuations and new economic stimulus measures. In a bid to nudge the domestic economy and bail state governments, China recently approved a 10-trillion yuan (US $1.4 trillion) package. Per reports, approximately 60% of this stimulus focuses on allowing local governments to refinance the mountain of debt on them. Srivastava explains foreign investors are also flocking to US dollar and Treasury yields, which have appreciated significantly in the recent past, leading FPIs to anticipate a stronger US economy going ahead. Moreover, high valuations in Indian markets are discouraging foreign investors from putting more money in the economy. As a result, over the past week, the selling pressure eroded Rs 74,563 crore in market value for Reliance Industries, while Bharti Airtel and ICICI Bank lost Rs 26,274 crore and Rs 22,254 crore, respectively. The combined market valuation of six of the top 10 most-valued firms dipped by Rs 1,55,721.12 crore last week. <h2> Silver linings</h2>Despite the ongoing outflux of funds since last month, November also saw unprecedented applications of about 40–50 new FPI registrations, which are eyeing to enter the Indian market. This was due to markets SEBIs recent relaxation to NRIs, permitting them to participate up to 100% and announcing measures for ease of entry and operations in India. On the other hand, FPIs invested Rs 599 crore in the debt general limit and Rs 2,896 crore in the debt voluntary retention route (VRR) during the period under review. So far this year, FPIs have invested Rs 1.06 lakh crore in the debt market. <li class="whitespace-normal break-words"></li>Going ahead, investors will be looking for certain macroeconomic cues, which include corporate earnings reports, India's inflation (CPI) and industrial production (IIP) data on November 12, the US inflation report on November 13, and wholesale price index (WPI) data on November 14.

FPIs withdraw nearly Rs 20,000 crore from equities in the last 5 trading sessions, make a beeline for China and US

<ul class="summary-list"><li>Trump Media shares have plunged 70% since going public in March.</li><li>The company is still carrying a market value of roughly $3 billion.</li></ul>Shares of <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/djt-stock">Trump Media</a> have plunged 70% since the company went public in March. Even after that sell-off, it's carrying a market value of roughly $3 billion, a figure one expert says is still too high."According to Bloomberg data they had sales of $837,000 last quarter and a net loss of $16.4 million. The numbers don't jive," Jay Woods, chief global strategist at Freedom Capital Markets, told Business Insider.He added that its current valuation "seems unjustifiable."One traditional valuation metric — price-to-sales ratio — is currently at 1,864 times, with the company generating revenue of less than $2 million in the trailing twelve months.In addition to the eye-watering valuation, Woods said Truth Social's growth has limited upside due to its political nature."They struggle with user retention and growth and the upside seems limited — especially if he loses the election," Woods said. "His relevance and age will play a role as will the fact that this never became the social playground for anything outside of politics."Another lingering issue weighing down Truth Social stock is Trump's increasingly frequent use of its biggest competitor, X, formerly known as Twitter.There's also the recent <a target="_blank" class="" href="https://www.businessinsider.com/trump-dump-djt-stock-sell-lockup-truth-social-2024-8">end of a lock-up period</a> for insiders to sell shares, which could put further pressure on shares.The offloading has already begun, with United Atlantic Ventures — an investment partnership run by two former contestants of Trump's "Apprentice" reality show — <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-media-insiders-litinsky-moss-donald-trump-truth-social-djt-2024-9">dumping nearly their entire 11-million-share stake</a> in the company for proceeds exceeding $100 million.There's also the risk that Trump himself will decide to sell some or all of his 57% ownership stake, although he's previously said he won't do so. But there's no guarantee he won't change his mind."If there was to be a fire sale by its number one shareholder, that could cause a panic with other insiders holding shares and lead to a major leg lower," Woods said.

Trump Media stock is down 70% since going public. One expert says its $3 billion valuation is still 'unjustifiable.'

<ul class="summary-list"><li>The hype for tech stocks could be approaching an end, according to Albert Edwards.</li><li>The SocGen strategist has been warning of a recession and coming stock crash for months.</li></ul>The stock market is flashing warning signs that the tech stock frenzy is about to end, according to one of Wall Street's most bearish analysts. Albert Edwards, the chief global strategist for Societe Generale, issued another warning about the blistering 2024 stock rally in a note on Thursday. He's been on high alert for a <a target="_blank" href="https://www.businessinsider.com/recession-outlook-economy-hard-landing-jobs-market-growth-2024-3">recession</a> and coming <a target="_blank" href="https://www.businessinsider.com/stock-market-crash-recession-sp500-gdp-inflation-unemployment-societe-generale-2024-6">stock market crash</a> for months, previously predicting that investors could soon face losses that mirror the dot-com crash in the early 2000s."As time marches on, there are few of us left who were in the industry during the 2000 Nasdaq crash let alone the 1987 crash. I was there, and the one thing I have learnt is not to be complacent. Bad stuff happens and the warning signs are there if you look for them," Edwards said in a note on Thursday.<a target="_blank" class="" href="https://www.businessinsider.com/stock-market-crash-magnificent-seven-tech-stocks-dotcom-bubble-edwards-2024-2">Tech valuations</a> are the big signal that something has to give. The sector has swelled to 35% of the total S&amp;P 500. That's the highest portion tech stocks have accounted for in the benchmark index since the early 2000s, right before the enthusiasm for internet stocks gave way to a massive wipeout in the Nasdaq Composite that took a decade to recover from.<div type="image" title="A graph showing tech valuations accounting for 35% of the S&amp;P 500" height="694" width="893" msid="111842057" hostid="261" sizebytes="21140"></div>Wall Street still has lofty expectations for tech earnings. Analysts are expecting tech stocks to post forward earnings growth of around 30% year-over-year, Edwards noted, though tech stocks have actually been posting around 20% yearly earnings growth.<div type="image" title="A graph showing technology earnings expectations growing faster than actual earnings growth" height="605" width="1257" msid="111842059" hostid="261" sizebytes="35116"></div>The earnings gap is quickly becoming apparent to analysts. Earnings-per-share upgrades have fallen sharply for the Nasdaq 100, while upgrades for the S&amp;P 500 and Russell 2000 are on the rise.<div type="image" title="A graph showing earnings upgrades for the Nasdaq 100 falling while upgrades for other indexes are rising." height="610" width="1274" msid="111842054" hostid="261" sizebytes="47670"></div>The forward price-to-earnings ratio of the tech sector also looks "stretched," with the sector being priced around 32 times forward earnings estimates. That compares to the S&amp;P 500, where the price-to-earnings ratio is hovering just above 20 — something that points to a "ticking IT valuation timebomb," Edwards said."And to what extent is this EPS growth enthusiasm similar to the overinvestment in cabling by the Telecoms industry in the late 1990s, fuelled by 'free' money? We could be about to find out," Edwards wrote. "What might pop this Tech bubble? A simple decline in EPS optimism might do the trick," he later added.Most <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-crash-bubble-correction-dot-com-tech-overvalued-ai-2024-6">forecasters</a> aren't expecting a dramatic <a target="_blank" class="" href="https://www.businessinsider.com/stock-market-crash-bubble-charts-valuations-breadth-sp500-outlook-hussman-2024-6">stock market crash</a>, but others on Wall Street have aired concerns that the <a target="_blank" class="" href="https://www.businessinsider.com/truist-downgrade-tech-sector-overweight-neutral-overvalued-communication-services-utilites-2024-7">tech sector could be overvalued</a> and headed for a correction.<a target="_blank" class="" href="https://www.businessinsider.com/stock-market-outlook-correction-fed-rate-cuts-corporate-earnings-election-2024-7">Corporate </a><a target="_blank" href="https://www.businessinsider.com/stock-market-outlook-correction-fed-rate-cuts-corporate-earnings-election-2024-7">earnings</a> also look poised to weaken later this year, Morgan Stanley's chief stock strategist said, predicting that stocks could soon see as much as a 10% pullback.

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BlackRock's bond chief explains why stocks will keep charging higher despite stretched valuations

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The stock market is entering 'Crazy Town' as valuations reach generational high, Stifel says

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Truth Social has eclipsed the latest valuation of Elon Musk's X after Trump Media stock surges

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Nvidia stock tests record highs as Wall Street defends chipmaker's valuation amid 'AI arms race'

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FPIs withdraw nearly Rs 20,000 crore from equities in the last 5 trading sessions, make a beeline for China and US

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Trump Media stock is down 70% since going public. One expert says its $3 billion valuation is still 'unjustifiable.'

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The stock market is flashing warning signs as tech shares are a 'valuation timebomb,' SocGen says

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