“The Stock Market Is Too High!” 📈

“The Stock Market Is Too High!”

Billionaire David Tepper thinks markets are the most overvalued since the dot-com bubble. Billionaire Stanley Druckenmiller believes markets present the worst risk-reward skew he’s ever seen. Billionaire and President Donald Trump has told these “so-called rich guys” to keep schtum.

He hopes to be re-elected in a bull market and is negotiating another multi-trillion-dollar stimulus bill in Washington. It seems Federal Reserve chief, Jerome Powell, is on his side, too, speaking for the first time in weeks after administering life support to the economy with unlimited money printing and interest rate cuts to zero. 

His job is to stabilize markets, and he’s committed to doing whatever that takes in spite of exhausting most of his monetary ammunition already. As a last resort and final recourse, we could see negative interest rates for the first time in US history.

The markets are so finely balanced that after a thirty percent boom from last month’s lows, we’re still feeling uncertain. The market fell “only” four percent yesterday, however, and bears took a victory lap. Influential investors say the top is in.

According to Google Trends, buying stocks has become a popular lockdown activity, and so an influx of first-time investors could be tiding us over until quarantines are lifted, and businesses can actually reopen. If coronavirus were to strike again, though, it’s unlikely these fragile markets would put up much of a fight before keeling over.

It may be worth adjusting portfolios, folks; half long, half short!

Share:
More Posts
OPEC’s Decision 🛢

OPEC leaders just hosted an important late-November meeting that may signal a change in strategy.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.