0.35% will increase as part of a strategic partnership and equity share swap with SoftBank GroupĪre surging on news the dating-app company will be added to the S&P 500, replacing WW International Incidentally, got a lift Tuesday from strong trade data.Īre soaring after the real estate investment trust announced a $3.9 billion deal to be acquired by funds managed by Pacific Investment Management (PIMCO).
Storied investor George Soros blasted BlackRockįor recommending its investors triple their exposure to China, in a Wall Street Journal op-ed. Soros warns on China and Match headed to the S&P 500īarclays strategists lifted their S&P 500 price target to 4,600 from 4,400, as they don’t see any Federal Reserve tapering triggering a “significant market selloff.” Therefore, (at least) some cash will be one of the few hedges that investors will find successful if/when the market corrects,” said Maley. “If/when this ‘everything rally’ ends, most everything will decline. “However, it is our opinion that the risk side of the risk/reward equation has grown substantially over the past several months…and therefore, we believe that investors should raise a little cash at these levels,” he said. Maley said he’s not predicting a pullback similar to those big years, and timing of any pullback is obvious tough. From 1998 to 2000, lots of companies with zero earnings saw shares shoot higher and investors pile in, and Maley sees parallels with `so-called “meme” stocks of today. Many big market tops of the past - 1929, 1999/2000 - were marked by big jumps in investor activity.Ħ. Individual investors make up 20% of average daily volume for stocks, twice the level of two years ago.
Maley said he’s bullish longer-term on cryptos, but is concerned about “froth,” given a 1,000% gain for bitcoin since the Federal Reserve’s massive quantitative easing program began in 2020, with Ethereum up 3,400%.ĥ. It has recently started to unwind and if that keeps going, markets have a problem.Ĥ. Similar to 19, margin debt has shot to new highs, which is fine until it starts heading the other way. “The last time SPACs were as big as they are today? That’s right 1928/1929,” said the strategist.
“Blank-check” or special-purpose acquisition companies where investors have no idea what the investment will be. Is trading at a 70% premium to its 200-week moving average, the biggest since 1999/2000. The Nasdaq-100 tracking QQQ exchange-traded fund The S&P 500 is trading at a lofty 22.5 times forward earnings and its price-to-sales ratio of 3.1 times is far costlier than in 2000. He’s not saying we’re going to see a bear market such as what transpired around those years, but thinks an “inevitable deep correction,” is more likely than most of Wall Street expects. Maley has another warning for investors in our call of the day, as he ticks off a list of “strong similarities” between stocks now and the heady markets of 1999, 20.