The speculative frenzy in equities is remarkable

News

Some of the all-time great short squeezes are underway

Shares of GameStop are slated to open near $100 today as the epic shortsqueeze combined with a speculative frenzy continues.

They were at $4 in August and $20 at the start of the month.

The shares have been bid up by retail options traders at WallStreetBets. I wrote on the weekend about how this episode crystalizes a new era in the stock market.

In the bigger picture, it’s clear to me that we’re in a speculative frenzy in equities and have been for awhile. The question is how far we’re along and I while this is nuts, I think it’s a sign that broader equities still have a long way to go.

Yes, margin lending his high but there’s nothing out there right now to pop the bubble.

For bank trade ideas, check out eFX Plus

Articles You May Like

US Dollar softens after hitting a fresh year-to-date high in the USD Dollar Index
US indices close lower on the day. No new records today.
What is the distribution of forecasts for the US CPI?
Australian Dollar dips on renewed US Dollar strength
S&P index reaches 6000 (but just barely so far)

Leave a Reply

Your email address will not be published. Required fields are marked *