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WallStreetBets favorites and meme-themed cryptocurrencies continued to see high interest from retail investors in the month of May, including GameStop ...
“bubble" in the stock market. To wit: “To appreciate how widespread current concern about a bubble is, consider the accompanying chart of data from Google Trends. It plots the relative frequency of Google searches based on the term ‘stock market bubble.’ Notice that this frequency has recently jumped to a far-higher level than at any other point over the last five years." What Is A Bubble? “My confidence is rising quite rapidly that this is, in fact, becoming the fourth ‘real McCoy’ bubble of my investment career. The great bubbles can go on a long time and inflict a lot of pa...
“A bubble is a market cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. Typically, what creates a bubble is a surge in asset prices driven by exuberant market behavior. During a bubble, assets typically trade at a price that greatly exceeds the asset’s intrinsic value. Rather, the price does not align with the fundamentals of the asset.“ This definition is suitable for our discussion; there are three components of a “bubble.” The first two, price and valuation, are readily dismissed during the inflation phase. Jer...
“A bubble is a market cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. Typically, what creates a bubble is a surge in asset prices driven by exuberant market behavior. During a bubble, assets typically trade at a price that greatly exceeds the asset’s intrinsic value. Rather, the price does not align with the fundamentals of the asset.“ This definition is suitable for our discussion; there are three components of a “bubble.” The first two, price and valuation, are readily dismissed during the inflation phase. Jer...
During the last few weeks, I have discussed the On Friday, I tweeted the following: Money flows very close to flipping negative. I might be a few days early but we are dropping #equity exposure by selling our long-index trading positions for now. Rotation back to #FANG also suggests concerns about the #reflation trade. pic.twitter.com/g8rM6Wx9Qn Not surprisingly, I received more than a few emails chastising me for “bailing on the bull market, which is going higher.” Such is hardly the case. We reduced our weighting in our “indexed” positions, which we use for overweighting e...