Gamestop trading frenzy fuels fears of next equity bubble
Ruffer warns of ‘over-exuberant’ markets but other investors think stocks have further to climb
Michael Rivera via Wikimedia Commons
The flood of retail investors piling into markets like the Redditors behind the Gamestop mania has been described as a “harbinger of over-exuberant markets” and evidence of potential equity bubbles brewing.
Down on its luck video game retailer Gamestop took the investment industry by storm at the end of January after an army of amateur traders on Reddit targeted the stock, with the intent of sending its shares “to the moon” and letting Wall Street have it. What followed was a frenetic week of trading which saw other beaten up and shorted stocks US cinema chain AMC and out of fashion mobile phone company Blackberry take off.
The Morningstar Star Rating for Stocks is assigned based on an analyst s estimate of a stocks fair value. It is projection/opinion and not a statement of fact. Morningstar assigns star ratings based on an analystâs estimate of a stock s fair value. Four components drive the Star Rating: (1) our assessment of the firmâs economic moat, (2) our estimate of the stockâs fair value, (3) our uncertainty around that fair value estimate and (4) the current market price. This process culminates in a single-point star rating that is updated daily. A 5-star represents a belief that the stock is a good value at its current price; a 1-star stock isn t. If our base-case assumptions are true the market price will converge on our fair value estimate over time, generally within three years. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detail informatio
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Home / News / Jupiter to axe up to 90 jobs following turbulent year of outflows and senior exits
Jupiter to axe up to 90 jobs following turbulent year of outflows and senior exits
Three roles from the fund management department are understood to be at risk
Jupiter is planning on making up to 90 staff redundant to position the business for growth following a “challenging year” in which it saw billions of pounds walk out the door and senior employees exit.
The FTSE 250 fund group has already begun a consultation programme which will see as many as 90 roles being cut from the business over a six-month period.
Unloved targeted absolute return sector suffers £12bn outflows in 2020 Varied and poor performance slammed
2020 was the third consecutive year the market area has missed the mark and lost money
Funds in the Investment Association s Targeted Absolute Return (TAR) sector failed to keep their promise once more in 2020 following markedly varied and poor returns throughout the course of the year, according to some investment professionals, who warned the market area will likely suffer prolonged outflows over the medium-to-long term.
Others, however, have suggested that the market area has performed broadly in line with other IA sectors over the past 12 months, and that there is still a case to be made for holding some of these.