Since its 2022 bottom, the S&P 500 adding more than $10 trillion in value.
These Seven Tech Stocks Are Driving the Market
Big tech is powering the stock market higher. Again.
The largest tech stocks, which dominated the stock market last year, have once again rallied. The group has pulled the S&P 500 back to record highs for the first time in two years. Investors are once again pouring money into tech shares in a bid to keep pace.
WSJ 24 January 2024
‘Magnificent Seven’ Tech Stocks Including Nvidia and Microsoft Are on Top Again - WSJ
US 30-Year Yield Reaches Year-to-Date High After Poor Auction
- Sale of five-year notes drew a higher-than-expected yield
- Expectations for Fed interest-rate cuts continue to ebb
24 januari 2024 at 19:40 CET
The longest-maturity Treasury yield rose more than 5 basis points to nearly 4.42%
TMUBMUSD30Y | U.S. 30 Year Treasury Bond Overview | MarketWatch
An infamous example was the South Sea Bubble in 1720.
67-year-old Newton in the spring of 1720 sold his South Sea stock for a tidy profit of £20,000.
But then the madness gripped him. As South Sea shares just kept on rising, Newton reversed course and ploughed his proceeds back in. He doubled down, converting his government bonds into even more South Sea Company stock.
Unfortunately, the bubble burst in the autumn of 1720, wiping out the ageing Newton’s savings.
“I can calculate the motion of heavenly bodies, but not the madness of people.”
Bitcoins. Tulips, England’s South Sea Company and France’s Mississippi Company
Extraordinary Popular Delusions and the Madness of Crowds
Extraordinary Popular Delusions and the Madness of Crowds is an early study of crowd psychology by Scottish journalist Charles Mackay, first published in 1841
In later editions, Mackay added a footnote referencing the Railway Mania of the 1840s as another "popular delusion" which was at least as important as the South Sea Bubble.
What the South Sea Company can teach us
John Plender FT 4 November 2020
From Dutch Tulips to Internet Stocks, How to Spot a Financial Bubble
History shows that investment crazes are often associated with financial innovation, new instruments created by Wall Street middlemen, surrounded by mystery and fueled by expectations of big future profits.
Sometimes they go very badly.
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