Citi Warns S&P 500 Frothiest Since GFC as Lee Eyes 7,700 Rally

On June 5, Citigroup flagged U.S. equity markets at their frothiest since the GFC, with its Bear Market Checklist hitting a record 11.5/18. Fundstrat’s Tom Lee simultaneously mapped a three-phase path that could lift the S&P 500 from 7,560 to roughly 7,700 before a midterm correction. The warnings cap a four-day sequence that began with BofA’s June 2 “late innings” alert, continued with Goldman’s June 4 record-high Risk Appetite Indicator, and included Danske Bank’s caution on the narrow, tech-led breadth. Despite stretched valuations and rising checklist flags, institutions still view dips as longer-term buying opportunities.