Everywhere you look, there’s a valuation lens that makes stocks look frothy. Also everywhere you look is someone saying don’t worry about it.
As harrowing as it has been to watch bond yields jump, watching them sit still would’ve been worse for stock investors banking on a major revival in earnings this year.
About $22 trillion of wealth was created in U.S. stocks, roughly the country’s total annual output. An exchange-traded fund tracking the airline industry has more than doubled. At least 45 companies in the S&P 500 have surged by more than 200%, including Tesla Inc., up almost 700%.
It may turn out that five new special purpose acquisition companies per day was too many.
Turmoil in mega-caps like Apple Inc. is stirring investor anxiety. But for professional stock pickers, it’s mostly good news when the market’s biggest companies loosen their grip.
For bond investors, inflation is pretty much all bad news, eating into the value of future returns. For equity traders, the tidings can be less categorically awful, given the ability of certain companies to wring profits from higher prices.
Hedge funds are slashing their stock exposure at the fastest rate in more than six years as a wave of volatility tied to some of their most-prominent bets forced a retreat from the market.
When someone identifies as a bear, normally it means they’re selling. In this market, where anyone who dares do that gets crushed, it just means you’re a little less bullish than everyone else.
After gutting buybacks to conserve cash, American corporations are repurchasing shares again. Corporate officers, on the other hand, are showing a bit less enthusiasm for their employers’ shares.
U.S. stocks will sink in coming months before resuming their record-setting rally and faster growth will spark inflation and higher yields in Treasuries, according to Byron Wien’s annual list of surprises.
To defend soaring equity markets against claims of overinflation, economists often cite a valuation methodology that adjusts stock prices for interest rates. The latest to do it is Jerome Powell.
An interesting thing keeps happening in the American stock market. Lately, when ownership of young companies passes from the institutions who nurtured them into the much broader arms of the investing public, their valuations double.
With Tesla Inc. about to be added to the S&P 500, people have wondered where index-tracking mutual funds will find the $80 billion of stock they’ll need to own in Elon Musk’s car-maker. Now they know: at least some of it will come from Elon Musk’s car-maker.
Some day, investors will be overwhelmed by all the fresh stock coursing into the U.S. equity market, and maybe even regret bidding up buzzy businesses that haven’t earned any money. But that day has not yet come.
The reopening rally, billed as a blessing for stock pickers, has failed to match hopes, at least as of yet. For many funds it made November another painful one when it came to competing with benchmarks.
A stock-market election indicator that is often ridiculed for its randomness but whose record of prescience is hard to ignore, at least completely, settled in Donald Trump’s favor on Tuesday.
It’s a fool’s errand trying to find an election signal in a stock market roiled by a global pandemic, but investors will take any edge they can get. One such indicator is flashing a warning for Donald Trump’s chances on Nov. 3.
Shares of renewable-energy companies expected to benefit from Biden’s energy policy plans have surged.
A group of investors who correctly timed the stock market’s bottom in March isn’t bargain hunting yet during the current selloff. Instead, they’re stepping up sales, flashing an ominous signal to any dip buyers.
As the likelihood of additional federal stimulus fades, U.S. stock investors are returning their focus to the coronavirus pandemic and not liking what they see.
The equity rally has been dominated by technology and other growth companies, some of which have valuations that already reflect earnings that are two years out, Wien said.
The more affluent middle-aged set still has lots of cash to invest, since it remained mostly unmoved by the frenzy led by Robinhood day traders in April and May.
Investor sentiment has turned abruptly in favor of beaten-down stocks as recovery bets mount. It’s something professional stock investors failed to foresee.