Stocks are in a bubble that will keep inflating until 2025 and push the market 30% higher, research firm says

The stock market is in a bubble, but it can keep growing.Johannes Eisele/AFP via Getty Images

  • The stock market is in a bubble, but that doesn’t mean investors should sell their stocks right now.

  • The S&P 500 still has 30% upside between now and the end of 2025, according to Capital Economics.

  • “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,” Capital Economics said.


The stock market is in a bubble, but that doesn’t mean investors should sell their stocks right now, according to a Monday note from Capital Economics chief markets economist John Higgins.

In fact, based on current valuations there is considerable upside for the stock market between now and the end of 2025, according to Higgins.

“We are sticking to our view that this [stock market bubble] will inflate through the end of next year. Our…

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