World This is how to know the stock market is approaching the peak, according to Fundstrat's Tom Lee
Calculating crypto — 6 stocks for the next 10-15 years — 10 top forecasts for 2021
Dear Readers, Has the stock market gotten too predictable for you? Indexes have hovered near record highs for months, and it's been the usual suspects driving moves: stimulus updates, economic-growth prospects, regulation and tax concerns, and maybe a dash of company earnings here and there. Those looking for a little more excitement would be well-advised to look towards cryptocurrencies, which are constantly rewriting the record book amid unprecedented volatility. Bitcoin in particular has been on a wild ride, with prices fluctuating by up to $US5,000 per unit on any given day. New record highs are followed the next day by record drops.
- More and more investors are increasingly concerned that the stock market is in a bubble.
- The market certainly has a "risk-on" feel as epic short squeezes in names like GameStop unfold.
- This is how to know when the stock market is approaching its top, according to Fundstrat's Tom Lee.
Investors are growing increasingly concerned that the stock market is in a bubble after soaring to record highs amid a global pandemic.
Legendary investorthat the stock market is in a bubble that could inflate further if President Joe Biden's $US1.9 trillion stimulus plan is passed.
Tom Brady's 76-year-old parents battled COVID-19 in September
Tom Brady's 76-year-old parents battled COVID-19 infections earlier this season, Tom Sr. revealed, saying he spent three weeks in the hospital in what he described as a 'matter of life and death.''I was in the hospital with COVID for almost three weeks and my wife was sick with COVID at the same time,' Tom Sr. told ESPN's Michael Greenberg on Monday.
"If it's as big as they talk about, this would be a very good making of a top for the market," Grantham said, adding that "when you have reached this level of obvious super-enthusiasm, the bubble has always, without exception, broken in the next few months, not a few years."
And Grantham isn't alone. According toa majority of investors believe the stock market is in a bubble.
Out of 904 active investors who manage at least $US10,000 in an online brokerage account, 66% of them think the market is either fully or somewhat in a bubble, according to the E*Trade survey. An additional 26% said the stock market is "approaching a market bubble," while only 8% said stock valuations are "not close to a market bubble."
Book value vs. market value: Knowing the difference between these two measures can help investors pick stocks
Book value and market value are ways to evaluate a company. Book value is based on its balance sheet; market value on its share price. If book value is higher than market value, it suggests an undervalued stock. If the book value is lower, it can mean an overvalued stock. Book value and market value are best used in tandem when making investment decisions. Visit Business Insider's Investing Reference library for more stories. Among the many measures that investors can evaluate companies, two tools are especially popular: book value and market value. Aside from the word "value" in their names, though, the pair have little in common.
The market is certainly in "risk-on" mode, as evidenced by the epic short squeeze in GameStop
But according toTom Lee, the stock market rarely approached a top when everyone is warning about an imminent stock market bubble burst.
Instead, the stock market tends to top when consensus says "there is nothing stopping this market from going higher." Right now, the opposite seems to be happening, according to Lee.
"We find many sceptical of stocks, that this is all 'retail driven,' [and the] plurality of our clients are reluctant to be too cyclically tilted," Lee explained.
"So I find a pretty health level of 'bearishness' out there," Lee concluded.
'Big Short' investor Michael Burry paved the way for the GameStop frenzy when he bought a stake in 2019. Here's the story of Burry's game-changing bet. .
Michael Burry of "The Big Short" laid the groundwork for the GameStop short squeeze. The Scion Asset Management boss purchased a stake in the video-game retailer in 2019. He also pushed for changes in three letters to GameStop's bosses. Visit Business Insider's homepage for more stories. "The Big Short" investor Michael Burry unknowingly lit the spark that ultimately led to the GameStop frenzy last week. Burry bought a stake in GameStop in 2019 because he determined the stock was undervalued. He penned three letters to the video game retailer's bosses, urging them to buy back shares and clean up their act.