MESSAGE
| DATE | 2021-02-01 |
| FROM | Ruben Safir
|
| SUBJECT | Subject: [Hangout - NYLXS] Risk Free Economy
|
Markets Look Like They’re in a Bubble. What Do Investors Do Now?
Michael Wursthorn and Akane Otani
2 minutes
For once, everyone seems to agree: Much of the market looks like it’s in
a bubble.
Shares of unprofitable companies like GameStop Corp . and AMC
Entertainment Holdings Inc . are rising at a breakneck pace, propelled
by a growing army of individual investors. Options activity is surging,
bitcoin prices are near records and businesses are rushing to
opportunistically sell stock through a flurry of initial public
offerings, listings of blank-check companies and follow-on share sales.
To many, valuations look stretched as they hover at levels similar to
the highflying days of 2000. That said, high valuations alone don’t
necessarily mean the rally is near its end, investors say. History has
shown that markets have often been able to climb far longer than thought
possible, be it the dot-com boom in the late 1990s or the dizzying rise
in Japanese stocks in the 1980s.
And recently, the broader stock market has been on the decline. The S&P
500 dropped 3.3% last week, though it remains up 66% from its March low.
The bubblelike behavior there has mostly been contained to a handful of
individual stocks, not larger indexes.
An even bigger issue arguing against a marketwide bubble is simple math.
With interest rates at rock bottom and further stimulus on the table,
many investors are being handsomely rewarded by putting their money into
riskier, higher-yielding assets. What’s more, in many cases earnings
have held up or been robust, despite a global pandemic.
--
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that Brooklyn, like Atlantis, reaches mythological
proportions in the mind of the world - RI Safir 1998
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DRM is THEFT - We are the STAKEHOLDERS - RI Safir 2002
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Being so tracked is for FARM ANIMALS and extermination camps,
but incompatible with living as a free human being. -RI Safir 2013
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