Citigroup Warns Global Stocks Are in Biggest Bubble Since 2008 Despite Upbeat Year-End Outlook

Citigroup said global stocks are in their largest bubble since the 2008 financial crisis, citing multiple indicators that it views as flashing warning signs. According to NS3.AI, the bank said 10 of 18 items on its Global Bear Market Checklist are now in the “danger zone.” Citigroup attributed the bubble risk to what it described as overvalued stock prices and optimistic investor sentiment. It also pointed to expanding investment tied to artificial intelligence and an increase in initial public offerings. Despite the warning, Citigroup maintained an optimistic outlook for markets by year-end.