BIS joins chorus saying stock valuations looking 'frothy', particularly in US

Madrid

THE Bank for International Settlements added its voice to institutions questioning whether stocks have become too expensive, saying they look "frothy" - particularly in the United States.

The BIS weighed in on the debate just days after Goldman Sachs Group Inc said a prolonged bull market across stocks, bonds and credit left its measure of average valuation at the highest since 1900. Stock prices are above historical averages and US companies may struggle to continue their pace of dividend growth, the BIS said in its quarterly review on Sunday.