Bear stock market
- Investors shouldn't chase the current FOMO-fueled rally in stocks, Wells Fargo warned.
- That's because the economy risks rebounding inflation, which could easily weigh on stocks.
- The risk-to-reward tradeoff of entering the market at this point are unattractive, the bank said.
The FOMO-fueled rally in stocks might not last much longer, and the market is facing the risk of resurgent inflation, Wells Fargo said in a note.
"Our analysis suggests that now is not the time to chase the technology sectors that have driven the bulk of this rally. For a long list of reasons, we remain cautious and believe that in the nearer term stocks will struggle to move much higher," senior global market strategist Scott Wren said in a note on Wednesday.