Three metrics indicate recent market gains are driven by fundamentals rather than speculative excess, per Goldman Sachs analysis.
The S&P 500’s 15% surge over the past two months ranks in the top 1% of historical returns since 1980, sparking bubble concerns. However, Goldman Sachs research highlights key differences from past market peaks.
IPO activity remains below average, net equity issuance is subdued, and trading in unprofitable stocks is far from extreme levels. These factors contrast sharply with prior speculative cycles, suggesting the rally is underpinned by strong corporate earnings rather than euphoria.
Recent volatility in tech stocks has not altered the broader trend, though analysts caution that market conditions can shift rapidly.