For all the attention given to the argument that the stock market is in a bubble, it is important to point out that not everyone shares that opinion.
Few fund managers have been more successful than Cathie Wood, head of ARK Invest and ARK Innovation ETF fund manager ARKK,
and ARK Genomic Revolution ETF ARKG,
which according to FactSet has attracted more inflows than other stock trading funds over the past 12 months. At a monthly webinar, Wood argued against stock being a bubble.
Since 2018, there has been an outflow of about $ 300 billion from equities, excluding repurchases of shares by companies. But there has been a $ 1 trillion inflow in bonds, she said. “If there is a bubble anywhere, it is not in the equity market, it is in an established income market,” she said.
See also: Is the stock market available for correction in 2021? Here’s what some experts think
Private equality feeds this bubble, she said. “It’s amazing to see a mature, private identity [companies], they will continue to accelerate them so that they can enjoy the spread of private opportunity, ”she said. Private equity holders maintain high-volume cash flows by not investing in the future. “That’s a problem for these companies, and their high cash flow margins will disappear over time.”
The wonder of buying “moonshots” that sell GameStop GME videos,
and AMC Entertainment AMC,
they have also enjoyed equalities fed into the binding bubble, she said. AMC bonds trading at 5 cents on the dollar have burned up to 80 cents because the cinema chain was able to provide parity. “Who’s going to be left holding the bag if AMC goes bankrupt? I don’t think one equality offer is going to change their situation, ”she said.
She also took a swipe at a passive investment. “This move towards passive investment that we have seen over the last 20 years… is now in a position to be disappointed,” Wood said. While acknowledging that tolerant money was cheap, she said they were “free for a reason,” a phrase often associated with arguments against value stocks. At least hedge by investing in innovation, Wood said.
In the ration market, there is a difference between those companies that are at the forefront of innovation and investment, compared to those companies that did not. She brought Tesla TSLA, a manufacturer of electric vehicles,
Square SQ payment services company,
and streaming Roku ROKU digital player,
as examples of platform companies that are growing and will get the most benefit. “We think these companies will grow in value, as Amazon has been doing. ”
The buzzard
The economic calendar includes a consumer price drop for January, and at 2pm East, a speech from Federal Reserve Chairman Jerome Powell on the labor market.
Cisco CSCO Systems,
shares fell 5% in pre-sale trading, as a network services company predicted a quarter-softer than expected market yields.
Twitter TWTR,
shares rose 5%, as the microblogging service reported stronger-than-expected earnings and revenue, although user growth was lower than expected. Lyft LYFT rail service,
jumped after losing a loss, and Uber Technologies rival UBER,
reports after Wednesday’s closure.
Under UA Arms,
shares rose 5% as a result of the manufacturer’s forecasts.
Other deck earnings include GM General Motors,
which has benefited from investor interest in electric vehicles.
Former quarterback Colin Kaepernick is the latest to create a special purpose construction company, trying to raise up to $ 287.5 million in an initial public offering.
As BTCUSD bitcoin,
rise in value, economics professor Nouriel Roubini says The Flintstones had a more sophisticated monetary system.
The market
US stock futures ES00,
NQ00,
marked higher, after the S&P 500 SPX,
silent Tuesday ended at the second highest level ever.
Yield on 10-year TMUBMUSD10Y Finance Department,
was 1.16%.
The card
Drawing on data from the National Multifamily Housing Council, this is the proportion of late rent payments, with the chart showing it did not fall too much during the COVID-19 pandemic. But the dataset does not cover subsidized and affordable places, and other low-cost units. “More of these tenants may have more problems paying rent,” says Wolf Richter of the Wolf Street blog.
Randomly read
“Stop grievances” – the advice given by one officer to the 1,500 employees to stay at home. He apologized.
Gorilla Glue is not a hair spray, it is a turn out.
House prices may be high, but sharks appear to be moving toward San Francisco.
Need to Know starts early and updates until the opening bell, but sign up here to have it delivered once to your inbox. The email draft will be sent out at around 7:30 am East.
Want more for the day ahead? Sign up for The Barron’s Daily, a morning preparatory meeting for investors, including a special report from Barron’s and MarketWatch