With S&P 500 at record highs, concerns rising of “bubble bursting”

Markets rose last week, with the S&P 500 rising 1.8 percent to a record high.

Still, many analysts are becoming increasingly concerned about stocks.

Dick Parsons, former Citigroup chairman, said he thinks there is a “disconnect” between the market and the real economy and he is concerned of “a bubble bursting and the markets falling precipitously”.

Mellody Hobson, president and co-CEO of Ariel Investments, said that growth stocks in particular are in “nosebleed territory” and are vulnerable to a rise in interest rates.

Ryan Payne, president of Payne Capital Management, said the six stocks that have driven the S&P 500's gains – Facebook, Apple, Tesla, Microsoft, Amazon and Google – are already trading at “extremely high multiples” and have little further to gain as the economy reopens.

BofA’s chief investment strategist Michael Hartnett said: “Sell the vaccine: frothy prices, greedy positioning, inflationary and desperate policymakers, peaky China and consumer all ultimately (a) toxic brew in 2021.”