The Federal Reserve may be fretting over the speculative euphoria in cryptocurrencies, SPACs and meme stocks, but plenty on Wall Street see bubble risks growing within all the systemically important assets.
Everything from European bonds and U.S. Treasuries to high-yield credit and tech stocks is trading near the highest valuations in decades — even as the inflation bogeyman risks breaking out at long last.
Market participants from Goldman Sachs Group to BlackRock are divided on whether all this constitutes an unsustainable frenzy. To Dan Fuss, the legendary 87-year-old vice chairman at Loomis Sayles & Co., it certainly looks that way thanks to unprecedented liquidity that is now set to tighten on good economic news.
Meanwhile, Kathy Jones of Charles Schwab & Co. is telling clients to beware the "nuttiness" in junk debt. And J.P. Morgan Asset Management's Bob Michele is calling on Fed officials to discuss tapering asset purchases soon enough, before market bubbles form.
Others are more sanguine — betting that the economic reopening and the releveraging cycle will pave the way for more cross-asset gains.
Interviews have been edited for clarity.