Sta Hungry Stay Foolish

Stay Hungry. Stay Foolish.

A blog by Leon Oudejans
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Bubbles

2021 saw more inflows to stocks than the past 12 years combined (Axios)

2021 saw more inflows to stocks than the past 12 years combined (Axios)

Axios Markets: 2021 saw more inflows to stocks than the past 12 years combinedBy: Dion RabouinDate: 12 April 2021 "Money flowing to stocks globally in just the past five months ($576 billion) has exceeded the inflow seen over the prior 12 years by well over $100 billion, according to data from Bank of America Global Research.Why it matters: It's further...

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The stock market may be getting too hot (Axios)

Axios Markets title: The stock market may be getting too hotBy: Dion RabouinDate 8 April 2021"There are a growing number of signs the bull market in equities is overheating, with indicators of investor complacency and risk-seeking reaching the highest levels since 2007 and 1999.Why it matters: Those periods of extreme euphoria were followed by market...

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Irrational exuberance

Irrational exuberance

In 1996, former Fed Chairman Alan Greenspan coined the term "irrational exuberance". He warned for overvalued asset prices, following long periods of low inflation and lower risk premiums. Today, the stock markets are widely seen as overvalued. Each bit of bad news (eg, Covid-19, economy, unemployment) translates in higher values on stock...

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A happy New Year with even more irrational exuberance

Monetary expansion by Central Banks reached unprecedented levels in 2020. This expansion boosted prices on financial (eg, bonds, shares) and property markets (real estate) rather than in the real economy. These price increases are considered to be profits rather than price inflation, following guidelines (eg, accounting). Also see my 2019...

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‘Will the Fed spend trillion of dollars, every year, forever to support the market?’ asks billionaire Howard Marks (MarketWatch)

MarketWatch title: ‘Will the Fed spend trillion of dollars, every year, forever to support the market?’ asks billionaire Howard Marks MarketWatch subtitle: How do people feel about buying securities that are high only because the Fed is buying?’ By: Mark DeCambre Date: 23 June 2020 "Billionaire investor Howard Marks appeared to have more questions than answers...

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For how long can today’s global economic expansion last?

The Economist title: For how long can today’s global economic expansion last? The Economist subtitle: The world’s business cycles are lengthening, but not abolished Publication date: 13 July 2019 "It is hard to summon significant optimism when looking at the world economy. As the trade war between America and China grinds on unresolved, indices of business...

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