We may be approaching another big market bubble and experts are blaming pandemic-bored amateur investors. Some of them are being accused of having the impression that risk in markets 'has simply vanished' ft.com/content/a790c7…
The rally since 2009 has been described as an 'epic bubble' characterised by 'extreme overvaluation'.
Bitcoin, the most speculative bet of them all, has raced to new extremes. Popular stocks like Tesla continue to defy efforts at sober valuation ft.com/content/a790c7…
Bitcoin, the most speculative bet of them all, has raced to new extremes. Popular stocks like Tesla continue to defy efforts at sober valuation ft.com/content/a790c7…
In the US, Americans are turning to stocks as 'casinos are closed [and] a lot of sports are shut down'. Much of their investment is focused on 'hyper growth' stocks such as electric vehicle makers, noted David Older, head of equities at Carmignac ft.com/content/a790c7…
Common features in market bubbles include low interest rates, stock valuations that tower over earnings, runaway retail trading, and rapid accelerations in equity gains. On all these points, current market conditions look alarming ft.com/content/a790c7…
But even given all these warning signs, investors are not staging any rush to the exits. In part, that is because the surge in retail trading may be less troubling than it looks ft.com/content/a790c7…
Optimists stress that professional investors are not demonstrating the same gung-ho attitude to risk-taking: instead, they continue to take precautions against the risk of a market setback ft.com/content/a790c7…
We may have signs of a market shake-out, but barring a near-unimaginable withdrawal of support from central banks, or a burst of inflation that jolts the bond markets, many investors agree we won't have a large reversal in risky assets ft.com/content/a790c7…
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