Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Irrational Rationality
It's tempting to go ahead and call it: The second half of 2023 surely won't be as kind to equity investors as the first half.
The Nasdaq 100 rose almost 40% in H1 after all. An encore would put this year on track to be among the best ever for big-cap US tech. That'd be some feat considering the policy backdrop.
The so-called "Magnificent 7" added one entire Germany worth of market cap during 2023's first six months.
Another fun factoid from BofA's Michael Hartnett: The combined market cap o
“Greater Fool Theory.” Although I haven’t seen this term applied for a while, your possible explanation for the equity bubble (today’s term) decidedly smells like the old GFT, aka a “snipe hunt.” Being caught at the top, at sunrise, with all those snipes in your bag, will not be a happy ending.
People retired early following the COVID crisis. A financial planner told me that he had never seen anything like it in 20 years. Here’s a hypothetical scenario: The folks that retired early are living off their retirement accounts – spending them down. However, it must be tempting to believe that they can make their nest egg double by buying the “right” stocks right now. The only other option would be to go back to work. That would explain the flows out of mutual funds and into sugar-rush ETFs and the four horsemen.