Investors return in a cheerful mood from the long holiday weekend, with some attributing that optimism about an impending changing of the guard at 1600 Pennsylvania Avenue. And we’ve got revenues and comments from Biden’s top pick of Treasury, Janet Yellen.
The S&P 500 SPX,
is up about 0.3% for the year after last week’s drop. That pales in comparison to some assets, with bitcoin BTCUSD,
up another 27% this year, after a return of 300% in 2020. And electric car manufacturer Tesla TSLA,
has risen 17% so far in 2021, after about 700% last year.
Read: Tesla’s new $ 950 price target on Wedbush is the highest on Wall Street, but the analyst still won’t say
In that regard, we continue with our call of the day, it’s all about calling. It comes from a study just published by Deutsche Bank, which stated, among other things, where investors now see the foam.
About 89% of respondents believe the markets are dealing with bubbles, and two stand out: US technology stocks and bitcoin. The latter comes close to the “extreme bubble” area.
“When asked specifically about the 12-month fate of bitcoin and Tesla – a stock that symbolizes a potential tech bubble – a majority of readers think they are more likely to halve than double, with Tesla more vulnerable, according to readers,” said strategist Jim. Reid and research analysts Karthik Nagalingam and Henry Allen. Tesla will report fourth-quarter earnings on Jan. 27.
More bubble thoughts on bitcoin – the cryptocurrency has reportedly topped the “most crowded position” in Bank of America’s fund manager’s monthly survey, pushing tech stocks off the top.
When it comes to bitcoin, avid investors don’t seem to be so scared:
Another question posed in Deutsche Bank’s survey was whether a potential bubble – the Federal Reserve winding down its asset buying program – was likely.
71% of respondents do not believe the Fed will wind down before the end of the year, which is in line with what Fed governors had said firmly at the end of last week, but a quarter of readers may think that economic growth / markets that force their hand, ”said Reid and the team.
Read: BlackRock’s CEO says a leading investor is flagging concerns about valuations and inflation
The markets
NQ00 technical stock futures,
incidentally are leading the way, followed by Dow and S&P 500 futures YM00,
ES00,
with European shares SXXP,
and a mixed day for Asian markets. The International Energy Agency has lowered its oil demand forecast for 2021. Raw prices CL.1,
seem unfazed.
The Quote
“Only 25 doses have been given in one country with the lowest incomes – not 25 million, not 25,000 – just 25. I have to be blunt: the world is on the brink of catastrophic moral failure.” That was World Health Organization Director General Tedros Adhanom Ghebreyesus, who on Monday had harsh words about global vaccine inequality.
The buzz
Bank of America BAC,
stocks are down on forecasted gains but disappointing on the earnings side, while Goldman Sachs GS,
stocks are up after strong results. Streaming gigantic Netflix NFLX,
is due after closing. View the income example.
In a prepared statement ahead of her confirmation hearings, Treasury nominee Yellen says US policy must be “ grand ” to help Americans struggling amid the COVID-19 pandemic. She should also say that the US does not want a weaker dollar.
The incoming Biden administration says coronavirus travel restrictions apply to incoming travelers from Europe and Brazil, after President Donald Trump just lifted the ban. That’s because the number of deaths from COVID-19 is increasing in 2/3 of the US states.
California’s state epidemiologist has advised halting the rollout of more than 300,000 doses of MRNA from Biotech Moderna,
vaccine, following possible allergic reactions by some recipients.
Coherent’s COHR,
Shares soar after optical component manufacturer Lumentum said it agreed to acquire the laser maker in a $ 5.7 billion cash-and-stock deal.
Western Union’s WU,
shares soar after money transfer company announced a deal to be in the stores of retail giant Walmart WMT,
The tweet
The graph
That Deutsche Bank study also raised a few questions about COVID-19 vaccines and lockdowns. It looks like life is expected to return to ‘normal’ later this year.
And when it comes to taking vaccines, there appear to be more than last month:
Random reads
Like in that Tom Hanks movie? A California man made his home at the airport for three months.
And Redditors gushed about everything they love and miss at airports right now.
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