Many have described
the stock as a bubble, a self - fulfilling prophecy where people are buying into the stock just because everyone else is.
Not exact matches
An economic
bubble happens when products, such
as stocks or homes, become worth more than their actual value.
By late last year, people — investors, angels, venture capital firms — were all overpaying for growth in technology startups and
stocks, just
as they had been 14 years earlier at the height of the last
bubble.
Hedge fund legend Julian Robertson Jr. sees
stock market valuations
as «very high» and worries about a
bubble forming.
In November, the Nasdaq composite index broke 4,000 for the first time since the last
bubble burst, inflated by
stocks even some CEOs, such
as Elon Musk from Tesla and Netflix's Reed Hastings, warned were overpriced.
If the
stock market seemed like it was zooming along during the dot - com boom of 1999 — later to become known
as a
bubble — just try keeping up with it in 2016.
However, if the economy is near or above its potential,
as some measures indicate, it may merely cause faster - than - desired price increases, or a jump in
stock and other asset values that raise concerns of a
bubble.
As for the general public, the kind of frenzy that marked the late 1990s dotcom
bubble in the
stock market has yet to appear.
When Immelt took over at General Electric in 2001 from venerable GE boss Jack Welch, the
stock was already turning over,
as the dotcom
bubble of the 1990s burst and took the broader
stock market lower
as well.
For example, large - cap companies dominated during the tech
bubble of the 1990s,
as investors gravitated toward large - cap tech
stocks such
as Microsoft, Cisco and AOL Time Warner.
As long as you do your due diligence, looking out for phenomenon such as value traps, viewing both the individual stocks you hold in your portfolio, and your portfolio as a whole, through this lens can help you avoid getting swept away in bubbles, manias, and panic
As long
as you do your due diligence, looking out for phenomenon such as value traps, viewing both the individual stocks you hold in your portfolio, and your portfolio as a whole, through this lens can help you avoid getting swept away in bubbles, manias, and panic
as you do your due diligence, looking out for phenomenon such
as value traps, viewing both the individual stocks you hold in your portfolio, and your portfolio as a whole, through this lens can help you avoid getting swept away in bubbles, manias, and panic
as value traps, viewing both the individual
stocks you hold in your portfolio, and your portfolio
as a whole, through this lens can help you avoid getting swept away in bubbles, manias, and panic
as a whole, through this lens can help you avoid getting swept away in
bubbles, manias, and panics.
For instance, Dean Baker, a liberal economist, sees the
stock market rise
as a double - edged sword, leading to the bursting of the
bubble in 2001 and perhaps helping shape a subsequent decade of only modest job growth.
That made it the best year on Wall Street since 1995, and it would take more than some short - term declines in
stock prices
as investors convert theoretical profits to the folding - money kind or even the inevitable downward market correction (the bursting of the proverbial
bubble) to take the bloom of this particular rose.
We stopped feeling sorry for ourselves after realizing we could make just
as much money buying puts, shorting
stocks, and investing in the real estate
bubble.
As the tech
bubble gained momentum, it was obvious that fewer and fewer
stocks were participating in the rally.
Gundlach believes commodities are
as cheap relative to
stocks as they were in the 1970s and during the dot - com
bubble of the 1990s, periods that were followed by strong outperformance by commodities.
Before he became president, he railed against the state of the economy, decrying the loss of manufacturing jobs and dismissing the steadily rising
stock market
as a «big fat, ugly
bubble.»
This may be good news for
stock market and real estate speculators
as savings are used to inflate the
stock market and real estate
bubble.
At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of
stock market value: 1) market cap - to - GDP, which Buffett once heralded
as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen
as accurately predicting the dot - com
bubble and the housing
bubble.
Advice: CNBC was criticized for its coverage of the dot com
bubble during the late 90's because it took more of a cheerleader role than
as an objective news source.Now, the network is required to report whether analysts it has on its shows do banking business with the
stocks they're talking about.
This contrasts sharply with past valuation / earnings divergences, such
as during the Dot - Com
Bubble, when valuations for technology
stocks disconnected from earnings and reality.
Technology
stocks involved in a
bubble may be confined to a particular industry (such
as internet software or fuel cells), or cover the entire technology sector
as a whole, depending on the strength and depth of investor demand.
Many market analysts and investors have called the recent melt - up in technology
stocks as the equivalent of a Tech
Bubble 2.0.
A
bubble may end with a crash, or simply deflate
as investors slowly lose interest and sales pressure pushes
stock valuations back to normalized levels.
Low interest rates helped fuel the real estate and
stock market
bubble by making the debt side of the balance sheet less expensive, creating a «wealth effect»
as people came to believe that rising property and
stock - market prices would be able to pay off their obligations.
Aside from acceptable «basis» risk between the
stocks we hold long and the indices we use to hedge, and perhaps 1 % of assets in option time - premium at any given time
as a result of staggering our strikes to provide a stronger defense, we don't consider various speculative
bubbles as threats to our own returns.
One of Buffett's most controversial bets — a
bubble - era wager on the long - term value of
stock market indexes, using tools he once scorned
as «weapons of financial mass destruction» — started to pay off in the fourth quarter.
Stocks aren't
as expensive right now
as they were ahead of the tech
bubble bursting.
Over the past two years, the behavior of the
stock market can be described less
as an ongoing bull market than
as the extended topping phase of what is now the third financial
bubble since 2000.
About the author: JS Kim is the Managing Director and Founder of SmartKnowledgeU, a fiercely independent research, consulting and education firm that focuses on gold and silver asset investment strategies
as a means of countering the damaging effects of rapidly devaluing fiat currencies worldwide and price - distorted
stock market and asset
bubbles created by Central Bankers.
When this becomes extreme,
as was the case during the technology
bubble, the resultant bust can turn growth
stocks into value
stocks almost overnight» Marathon Asset Management
On Thursday, October 24th 1929, a spate of panic selling occurred
as investors began to realize that the
stock boom was actually an over-inflated speculative
bubble.
Perhaps the greatest speculative mania of all time was Kuwait's Souk al - Manakh
stock bubble in the early 1980s, which is
as fascinating
as it was devastating.
As a U.S. company, its pay vote is advisory, not binding; moreover the company's share class structure means that approval is effectively assured, with founders» Class B shares carrying ten times the voting power of ordinary Class A. Nonetheless, opposition has been
bubbling up, with an amendment to the company's
stock plan generating a 28 % against vote at the 2016 AGM.
As interest rates rose, the massive real estate / mortgage
bubble popped, and the
stock market again crashed.
Finally the real New York
Stock Exchange (NYSE)
as a percentage of US GDP rose to new highs — going over the previous high set on March 2000, more than 15 years ago when the dot - com
bubble was at peak!
As big as previous real estate and stock market bubbles have been, the current global bubble in government debt dwarfs them al
As big
as previous real estate and stock market bubbles have been, the current global bubble in government debt dwarfs them al
as previous real estate and
stock market
bubbles have been, the current global
bubble in government debt dwarfs them all.
(In the internet
bubble, for example,
as internet
stocks went up in price, market cap - weighted indexes became too heavily concentrated in this overpriced sector and too underweighted in the
stocks of established companies in less exciting industries.)
Once the inflow of new employee contributions slows, the rise in
stock prices will collapse, just
as the mortgage
bubble collapsed.
As the market valuation of the total
stock of bitcoins approached US$ 1 billion, some commentators called bitcoin prices a
bubble.
«This recovery has been fueled by a housing
bubble, just
as the late 90s cycle was fueled by a
stock bubble,» said Baker.
Jon Hilsenrath noted the seeming irony: «In August 1999,
as the tech -
stock bubble was worsening, Alan Greenspan stood before central - banking colleagues in Jackson Hole, Wyo., and argued it wasn't the central bank's job to prevent asset
bubbles.
Outgoing Federal Reserve Chair Janet Yellen, whose last day in the post was Friday, in her final interview
as chair told CBS News that
stock prices are «high,» though she declined to define it
as a
bubble.
I said earlier this summer that I don't believe the
stock market
as a whole is in a
bubble.
So the Fed's real goal is to re-inflate the real estate
bubble (while spurring a
stock market
bubble as well, if it can).
Bears will point to SNA's rising finance and contract receivables
as reason to believe the
stock is in
bubble territory and set for a crash.
The Sage Policy Group CEO pointed to possible real estate and
stock market
bubbles, lagging wages and rising business costs associated with employee benefits and health care
as factors that could slow growth in 2020 and beyond.
US DOW, NAS, etc
stocks are helium filled
bubbles overvalued
as per EPS etc a Canadian oil, copper, will trade 5or6 EPS while a US doing the same will trade 20,30 plus times EPS.
They then address gold
as an investment
as follows: portfolio diversification with gold; gold
as a safe haven; gold in comparison to other precious metals; relationships between gold and currencies; mining
stocks and exchange - traded funds (ETF)
as gold substitutes; interaction of gold and oil; gold market efficiency; gold price
bubbles, interactions of gold with inflation and interest rates; and, behavioral aspects of gold investing.
Admittedly the heads of the world economy are also becoming worried
as they take
stock of the situation, and face up particularly to the presence of the Asian tigers, the irrational growth of the financial
bubble and the extreme poverty in the world.