Bubble warnings go unheeded as everyone is a buyer in stocks
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Last Updated: Feb 21, 2021, 11:06 AM IST
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Synopsis
While aspects of the craze the growing obsession with penny stocks and options, primarily are the basis for daily warnings about a bubble, bulled-up positioning is proving a sturdy backbone for the rally.
Reuters
Up 75% from March, the S&P 500’s gain dwarfs all previous bull markets at this stage of the cycle since the 1930s.
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The American love affair with stocks is deepening as everyone from frenetic day-traders to staid institutions dive further into the market.
Equity funds are drawing fresh money at an unprecedented pace and hedge funds are boosting their stock exposure to a record. Companies themselves are re-emerging as big buyers, with share repurchases doubling from a year ago.
Flexible Plan Quantified Funds Reach $1 Billion AUM
Quantified Funds employ dynamic asset allocation to adjust in uncertain markets
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BLOOMFIELD HILLS, Mich., Feb. 16, 2021 /PRNewswire/
Flexible Plan Investments, Ltd., a leading provider of dynamic, risk-managed investment solutions, announced that its Quantified Funds family has reached $1 billion in assets under management. Launched in 2013, the Quantified Funds are a series of actively managed funds that employ dynamic asset-allocation strategies to adjust to market environments. The growth and success of the Quantified Funds demonstrate the degree to which advisers are seeking strategically diversified portfolios of actively managed funds to help clients dynamically manage risk and returns in uncertain markets. The adoption of our funds by advisers looking for singular solutions, as well as their use in a more comprehensive solution like our Quantified Fee Credit separately managed acc
Time to Inspect the Indicators Let s check out some interesting trading tidbits and see what could unfold in the coming days.
Feb 04, 2021 | 06:00 AM EST
We saw some interesting tidbits in Wednesday s trading. I would not call any of it significant, but certainly worth noting and discussing.
Yesterday we discussed the McClellan Summation Index, which peaked in December and has been slowly leaking for the last two months. Remember this tells us what the majority of stocks are doing. With the positive breadth on Wednesday this indicator stopped going down. It has not really turned upward yet but it stopped going down and that is a change.
February 2, 2021
Our research shows the GameStop controversy is localized in stocks. This has been a strange week. Never before has social media been used to move large chunks of the stock market and rattle parts of the thick-skinned hedge fund industry. In our view, professional traders are reducing their equity exposures given the unpredictability of what’s happening, which undercut the broad stock market indexes this week. During such times of volatility, Horizon Investments focuses on whether the ripples will turn into a wave of risk aversion that engulfs bonds, currencies, emerging markets or high-yield debt. Our
Market State monitor (see below) gives no indication of that yet. The correlation of moves across asset classes in the short-term is still low relative to the long-term (that’s indicated by a reading below zero). In other words, the world’s markets are still going their own ways, showing that this remains a localized stock market problem and not a systemic
We Got a Rally, but That s Little Comfort Now, here s what I see for volatility, sentiment and complacency. Stocks quotes in this article: GME
We got the rally, but you probably don t need me to tell you it wasn t the best rally we ve seen.
I have been harping about the volume figures being so distorted by all the speculative action in GameStop (GME) and the rest of the high short interest names, so I will keep harping for now.
During Wednesday s decline, up volume was decidedly more than down volume at 55%, which is so odd for a day the major indexes lose 2% or more. Thursday s rally saw up volume on the New York Stock Exchange at 51%.