Stocks are up, signaling an economic boom -There used to be human traders at exchanges, and then at Nasdaq terminals.

Oil is down as if we’re headed toward a recession.

Home prices are up as if rate cuts will continue.

Gold is up, suggesting inflation is back.

The dollar is strong as if Europe, Canada and China are ailing (spoiler alert: They are.) Still, something’s got to give.

Core inflation is rising and has been over 3% since April of 2021.

Long bonds are signaling that the Fed needs to stop cutting rates.

The S&P 500 risk premium, which is the earnings yield of stocks minus the 10-year Treasury rate, is basically negative.

In effect, investors are paying for the risk of owning stocks instead of bonds. Weird. The last time this happened was in 2002.

The crypto market is crazy, with Bitcoin hitting new highs.

Palantir stock is up more than 250% for the year on artificial intelligence hype and is now worth roughly $145 billion.

It’s a great company but is ahead of itself. The stock is selling at 483 times after tax operating earnings. And 55 times sales. Buyer beware.

How can this happen? I’m worried that our market plumbing is broken.

There used to be human traders at exchanges, and then at Nasdaq terminals. Now trading is dominated by opaque high-frequency trading outfits

Andy Kessler Wall Street Journal 24 November 2024

“Who are you to know if a stock is cheap? Have you ever lived through a downturn?”

Tillbaka till Rolfs länktips 26 November 2024

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