- The stock market is at an all-time high, and there are already some stocks that asome overbought stocks
- ngerous for investors who have these companies in their portfolios, as a correction is about to happen.
- The list includes well-known names such as Nvidia, Eli Lilly, Disney, Berkshire Hathaway, and American Express.
Wall Street stocks are at record highs, with the S&P 500 trading very close to 5,100 points.
This was due to favorable economic conditions due to a decline in inflation, as well as companies in the market experiencing strong earnings seasons.
However, the strong and rapid growth in companies also generated a Many shares wereought excessthat ively. This means that the company’s 14-day RSI is above 70.
What happens when a company is considered “overbought”? Improvement In the short term, it is therefore important for investors to keep this information in mind.
The most bought stocks in the market so far this year
As we can see in the table, NVIDIA It’s there after rising 238% in 2023 and more than 44% so far this year.
According to FactSet, its shares are overbought with an RSI of 80, although most analysts are optimistic about chip makers in the medium and long term.
Another company included in the list is drug developer Eli Lilly, which is currently the biggest buy on Wall Street. Its shares have risen by about 26% in 2024.
Similarly, Deutsche Bank, Bank of America, and Wells Fargo both raised their target prices for the company.
The ranking also includes three big companies, namely Disney Warren Buffett’s firm, Berkshire Hathaway, American Express,