Bubble Warnings Go Unheeded as Everyone Is a Buyer
in Stocks
https://www.bloomberg.com/news/articles/2021-02-20/bubble-warnings-go-unheeded-as-everyone-is-a-buyer-in-stocks
““It’s been truly amazing,” said Brian Culpepper, a money manager at James Investment Research. “Everyone just thinks the stock market is going to go, go, go,” he added. “Whether it’s herd mentality, or fear of being left behind, that’s what you’re seeing.”
Dated from the last bear-market bottom, the boom cycle
is young -- 11 months, versus five years for the median bull market. But its
velocity makes up for the age. The S&P 500’s current peak-to-trough gain
already eclipses three other full bull markets. If history is any guide, this
one is likely more than half done as the median return of the 13 previous bull
cycles was 126%”.
Tech Valuations Are Getting Scary. Here’s How We
Know.
https://www.barrons.com/articles/tech-stocks-look-too-pricey-and-wall-street-analysts-dont-seem-to-care-51613782764
https://www.bloomberg.com/news/articles/2021-02-20/bubble-warnings-go-unheeded-as-everyone-is-a-buyer-in-stocks
““It’s been truly amazing,” said Brian Culpepper, a money manager at James Investment Research. “Everyone just thinks the stock market is going to go, go, go,” he added. “Whether it’s herd mentality, or fear of being left behind, that’s what you’re seeing.”
https://www.barrons.com/articles/tech-stocks-look-too-pricey-and-wall-street-analysts-dont-seem-to-care-51613782764
Hey, GameStop Traders, Buying to Push the Price
Doesn’t Work
https://www.bloomberg.com/news/articles/2021-02-19/hey-gamestop-traders-buying-to-push-the-price-doesn-t-work
“The investment newbies who lost money speculating on GameStop Corp. shares made a classic mistake: They tried to push up the share price through their own purchases.
That did not work and never
has, says Lasse Pedersen, a finance professor at Copenhagen Business School and
a principal at AQR Capital Management, the big Greenwich, Conn.-based
investment manager. He spoke in his academic capacity on Feb. 19 in a webinar
hosted by Princeton University economist Markus Brunnermeier.
By buying shares to make them go up, you’re acquiring them at steadily higher prices. When you start to sell and your selling inevitably pushes the shares back down, your average sales price will be lower than your average purchase price, which is a long way of saying you will lose money, Pedersen said”.
https://www.bloomberg.com/news/articles/2021-02-19/hey-gamestop-traders-buying-to-push-the-price-doesn-t-work
“The investment newbies who lost money speculating on GameStop Corp. shares made a classic mistake: They tried to push up the share price through their own purchases.
By buying shares to make them go up, you’re acquiring them at steadily higher prices. When you start to sell and your selling inevitably pushes the shares back down, your average sales price will be lower than your average purchase price, which is a long way of saying you will lose money, Pedersen said”.
Related:
Inflation Problems Depend on Where You Look for
Them
https://www.wsj.com/articles/inflation-depends-on-where-you-look-for-it-11613903414
If the Fed’s low interest rates lead to trouble, the reason might be climbing asset prices rather than consumer prices
https://www.wsj.com/articles/inflation-depends-on-where-you-look-for-it-11613903414
If the Fed’s low interest rates lead to trouble, the reason might be climbing asset prices rather than consumer prices
Inflation Angst Is About to Rewrite the Stock
Market Playbook
https://www.bloomberg.com/news/articles/2021-02-21/inflation-angst-is-about-to-rewrite-the-stock-market-playbook
https://www.bloomberg.com/news/articles/2021-02-21/inflation-angst-is-about-to-rewrite-the-stock-market-playbook
Bond Selloff Prompts Rethink by Stock Investors
https://www.wsj.com/articles/bond-selloff-prompts-rethink-bystock-investors-11613919600
https://www.wsj.com/articles/bond-selloff-prompts-rethink-bystock-investors-11613919600
If yields rise more quickly and unpredictably than
expected, that would be disruptive to assets like shares, many analysts say.
Have misguided policies led to recent asset bubbles and boom-bust cycles?