Shares could fall in tenths of percents, Wells Fargo warns

American shares are reported to be so high that further rising could lead to unsustainable values

Two-digit percentage points decline could appear in upcoming months.

Interest rates are low, credit spreads short, Fed chooses accommodative policy and tension in the US-China trade disputes eases. According to Chris Harvey, head of equity strategy at Wells Fargo Securities, these factors should be warning signals. “When everything seems positive and expectations keep improving, that is the moment when investors should be alert, ” he said to Bloomberg.

Harvey worries that all the positive symptoms can dramatically change and shares can start declining fast. “So far it’s been a great ride and it was amazing to participate in it,” he added. Yet, now it’s time to ease the stock market euphoria.

Jeremy Siegel, Professor of Finance at the Wharton School of the University of Pennsylvania, shares the same opinion. Siegel, who predicted Dow Jones Index to exceed threshold of twenty thousand points, also states that stock markets still respond to it fundaments, yet can exceed to unsustainable values. One of the risks is people forgetting possible risks, the academist from, said.


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