This bubble may be far from bursting

The ways things are going, our upbeat forecast for the S&P 500 of 5,500 at the end of this year may be realised in a matter of months. We doubt the rally would end there, though. Admittedly, we might be inclined in that event to pencil in an earlier end to the party on the basis that the bigger a bubble the sooner it might burst. But, for now, we are sticking to our view that this one will inflate through the end of next year. Our end-2025 forecast of 6,500 for the index is premised on its valuation reaching a similar level to its peak during the dot com mania.