![]() They are investing based on global fundamentals that look fine to the trained eye. They don’t have Robinhood amateurs to blame for high prices. Lastly, the Global Market Index ex-USA is outperforming the USA. And I will bet that these guys are not buying options on JP Morgan. Granted, small previous sports bettors had no games to bet on last summer and they instead turned to online trading but this is a Covid phenomena not the type of speculative binge at the top of a four year bull market that precedes a bear. ![]() So forget comparisons to the commission days. With zero commission, they now make sense and the newly added players due to this increases the liquidity to make it even better. I basically stopped trading them or even doing covered writes. We have all likely traded options in the past and seen minimum commission rates eat up the trade. When the introduced zero commission stock and option trading, they changed investing for small investors completely. So using those three dates, I don’t see a reason why one should be on the sidelines.Īnother thing is the sentiment gauges that are off the charts bubble bullish. I must say up 11% after the Vaccine Announcement is way too little. It was incredibly better and coming incredibly sooner. What we got was a 95% efficacy and a vaccine that can be mass produced on a manufacturing basis. Back in the depths of the pandemic, we were expecting a vaccine that would be 60% effective, take a long time to get approved and be slow to produce using then current methods of making it (think billions of eggs and petri dishes). Is that excessive? I’d say absolutely not. Plus these 500 companies will have less competition from private Main Street firms who have less access to the government giveaways.įrom the day before the Vaccine announcement to now (350 to 390) the SPY is up 11%. The Fed has established itself as a backstop for markets AND allowed risky borrowers to raise all the junk debt they want at previous quality debt yields. ![]() I’d say no since we had Fed and Government inject a ton of dollars into the economy beyond anything ever seen before AND they commit themselves to zero short term interest rates for years. Let’s look at valuation from prices of SPY at three dates Market High Feb 2020 339, day before Vaccine Announcement Day after Biden win 350 and finally now 390.įrom the previous high at 339 the market was up 3% the day before the Vaccine Announcement and about a week after Trump lost the POTUS Twitter account.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |