Risk Assets Continue Their Rise

For another quarter, regardless of pandemic uncertainty, most major asset classes continued to see positive performance and produce gains. Market indexes made new highs throughout the quarter. The performance of high-quality credits reminded us that inflation concerns are broad in the market and the inordinate appetite for risk continues to grow as investors seek gains in an environment where asset valuations continued to be higher than we’ve ever seen.

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Stock Valuations Are Sky High – What Comes Next?

Investors are facing economic conditions that have not been seen for 40 years. This quarter, we will examine how to measure and evaluate stock market valuations and then identify the driving economic forces responsible for their rise to such significant levels. Finally, we will discuss the economic mechanisms that pull valuations back towards their mean, what indicators investors should be monitoring and what those indicators may foreshadow for stock prices and valuations going forward.

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Episode 12: Stock Valuations Are Sky High – What Comes Next?

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Investors are facing economic conditions that have not been seen for 40 years. This quarter, we will examine how to measure and evaluate stock market valuations and then identify the driving economic forces responsible for their rise to such significant levels. Finally, we will discuss the economic mechanisms that pull valuations back towards their mean, what indicators investors should be monitoring and what those indicators may foreshadow for stock prices and valuations going forward.

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GameStop – A Financial Battle to the Death and What It Foreshadows

Some traders are making millions or tens of millions of dollars on their GameStop holdings, while several hedge funds are losing billions of dollars. A huge number of small retail traders have been taking it to the billion-dollar hedge funds that have large short positions in GameStop, and these retail traders are a vicious pack out for blood. This zero-sum battle between small retail investors taking long positions (betting the stock will go up) and big money hedge funds on the short side of the trade (betting the stock will go down) led to a massive short squeeze that propelled the price of GameStop into a parabolic move to the moon.

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