This US stock bubble could rank among the biggest in history

Bubbles are formed around individual stocks and sectors. 

As the concentric circles of excess widen, more and more stocks are infected. Wildly exaggerated stock stories force a delinking between fundamental analysis and share prices.  

That is how a stock such as Tesla commands a market capitalisation of about $400bn, up from $80bn in March, and $40bn one year ago. 

FT 7 September 2020



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