Monday, December 20, 2021

Overvalued Markets? Here is What's Really Happening

 Day trading: A COVID-19 replacement for sports betting that hasn’t gone away.

Short-dated options: A trading boom in securities that have only slightly better odds than a lottery ticket.

Bitcoin: Total euphoria despite being impossible to value and worse for the environment than a 1972 Oldsmobile.

Cannabis stocks: Big valuations (and hopes) on small revenues.

Electric vehicles: A company that’s never sold a car (Rivian Automotive Inc.) is worth more than Daimler AG, Ford Motor Co. or General Motors Co.

Special purpose acquisition companies: Still booming despite being the most abusive financial product ever invented.

Meme stocks: GameStop Corp. and AMC Entertainment Holdings Inc. levitating at levels far above fundamental value.

Initial public offerings: Only 25 per cent of companies going public are profitable. It’s been this low once before during the dotcom era of the late 1990s.

Venture capital: Big money pouring into a tiny corner of the capital markets. Even staid, dividend-paying companies are putting up hundreds of millions of dollars to create their own venture funds.

https://financialpost.com/investing/investing-pro/its-hard-not-to-dance-when-everyone-else-is-having-a-great-time-but-investors-beware





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