"Wall Street, is there still a short position?"

    Stock purchases rose further after the U.S. handed out the last round of Covid relief. According to the latest survey from Bank of America, the number of investors who said they had higher-than-normal risk exposure reached a record high, with combined assets of $561 billion.

    Signs of excessive speculation are already showing up on Wall Street. Penny stocks soared, funds piled up to speculate on themes, risks overflowed and valuations continued to hit historical record, and many investors asked, “are there any shorts in Wall Street?"

    Yet Wall Street firms are telling their fund managers to continue investing heavily on the index amid a fresh round of stimulation. U.S. stock exchange-traded funds (ETFs) saw $7 billion inflows last week, and the most inflows are from those hottest themes from solar energy to robotics. The S&P 500 rose 1.9%, its biggest weekly gain since last November.

    In a market with "excess" liquidity from central bank, overall market valuations remain below historical averages when factoring in U.S. Treasury yields, corporate credit, and cash, said by Goldman Sachs.

    Citigroup takes the same view. Their global strategy team, which measured global stock prices both relatively and historically, concluded that even the already expensive U.S. stocks still have room to up.

    It appears that the Wall Street bubble is still inflating.