LIVE MARKETS-Bubble trouble? Goldman Sachs says not yet
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BUBBLE TROUBLE? GOLDMAN SACHS SAYS NOT YET
Concerns over a tech-driven market bubble are growing, but Goldman Sachs strategist Peter Oppenheimer argues we're not there yet.
Oppenheimer acknowledges in a Wednesday note, that some features rhyme with past bubbles: elevated valuations, market concentration and increased capital intensity of leading companies.
However, he argues key differences remain.
The tech sector's rally has been underpinned by solid fundamentals, with leading firms boasting unusually strong balance sheets. Moreover, AI's development is still dominated by a handful of incumbents, unlike previous bubbles marked by huge competition.
While valuations are stretched, they haven't reached historic extremes. Still, Oppenheimer cautions that rising concentration and intensifying AI rivalry could shift dynamics.
His advice? Stay diversified.
(Danilo Masoni, Shashwat Chauhan)
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