US markets are living through unprecedented times. Everyone is feeling giddy. There are so many mini bubbles: Tesla, SPAC, Bitcoin, SaaS.
• Exponential price growth
• Leading to fund raising
• New Investors who do not know what they are doing.
• Early Investors and insiders are selling or looking to sell.
• Old economy stocks are also soaring as they try and get piece of the new shiny thing.
• Crazy price movements in unheard of names with no connection to the fundamentals – Signal, GameStop, AMC.
If it looks like a bubble, feels like a bubble then it must be a bubble right?
• Little-understood technology
• Unrealistic promises of endless revenues
• Scores of small-time investors
• Difficult to understand and value
• People buying only because it is going up in value
Is this just a bigger bubble, barrelling towards a louder pop?.
However, the thing about bubbles is nobody knows how big they will get before they pop. Nobody knows the precise moment or the precise reason for the bubble to pop.
As has been our view, Covid is not the needle that pricks the bubble, in fact it has fuelled it even more, Now it is pretty self evident. Unprecedented global coordinated stimulus provided to the world economy is going to create more and bigger bubbles. To Learn more and make an informed view yourself.
Please go through the ValueQuest Webinar on Bull Market or Bubble: