Profit growth estimates for companies in the S&P 500 have climbed by 20% over the past six months, a pace that several analysts now describe as unsustainable.
The rapid upward revision of earnings forecasts has fueled concerns that a bubble is forming in US equities, with the market pricing in levels of corporate performance that may not be deliverable.
According to a report by Financial Times, cited by Dagens Industri, the consensus among these strategists is that the current trajectory of earnings exuberance poses a significant risk to the broader market.
The warning comes as investors have continued to bid up valuations, driven by optimism over corporate profitability and economic resilience.
This skepticism aligns with recent commentary from other market veterans.
Handelsavisen previously noted warnings from Wall Street strategists, including a leading analyst at Citigroup, who cautioned that the market's relentless upward trajectory has pushed risk appetite to extreme levels.