Renewed record highs on the Nasdaq and S&P 500 have raised the specter of a market bubble floundering on the reality of adverse economic conditions.
US markets appear out of sync with the economic realities of a still highly active global pandemic, weak company earnings, and subdued economic data – with even the US Federal Reserve (Fed) warning that more uncertainty lies ahead. All market losses have been recovered since March, and the Nasdaq has surged more than 25% since January.
Billionaire investor George Soros has been one of those warning of a bubble that could deflate soon, as with the dotcom bubble in 2000.
Asset managers caution that the US economic recovery might not be the desired V-shape as anticipated, but rather be in the form of a K-shaped recovery where some companies have rebounded while others are still in the doldrums. In contrast with the tech surge, average stocks on the S&P 500 are about 30% off their peaks, prompting some to rename the index the ‘S&P 5’ to reflect the unhealthy market dominance of the high-flying tech companies.
Diese Geschichte stammt aus der 10 September 2020-Ausgabe von Finweek English.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der 10 September 2020-Ausgabe von Finweek English.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
