Global markets on the verge of a bubble

Experts from Bank of America Corp. They warn of an increased risk of bubbles forming in stock markets due to the softening of monetary policy and the weakening of financial regulation. 

The global interest rate dropped from 4.8% to 4.4%, as the central banks of the United States, Britain, Europe and China reduced the cost of borrowing. The rate is projected to be further reduced to 3.9% over the next year.

Politicians are discussing legislative changes aimed at increasing the share of retail investors in the United States. Analysts point out that this could lead to increased liquidity, volatility, and the risk of market bubbles.

Earlier, Bank of America experts accurately predicted the outperformance of global stock indexes over American ones this year. Back in December, they stated that after significant growth in 2024, the indices may lose stability. The S&P 500 index, following their forecasts, fell by 18%, but partially recovered by April.