15 Days Trial+Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp.

Take Five: World market themes for the week ahead

Bullish retail investors have plunged into the complex world of derivatives like never before this year. Over the last 20 days, a record average of roughly 22 million call contracts have traded each day across U.S. exchanges.

Spurred by endless monetary stimulus and bets on a post-pandemic world, day traders and institutional pros alike are enjoying the easiest financial conditions in history.

Special-purpose acquisition vehicles that raise money for a blank check company to buy whatever it wants have raised over $60 billion in 2020. Thats more than the previous decade combined.

Cboes equity put-call ratio has dropped near a decade low — a sign traders have rarely ever been so hellbent on chasing upside in single stocks.

Even with political turmoil, Peru sold the lowest-yielding century bonds ever from a developing-economy government. Ivory Coast priced euro-denominated debt with a lower yield than last year, despite its participation in a G-20 debt relief initiative and an ongoing International Monetary Fund program.

If that isnt a sign of exuberance, we dont know what is! Bespoke analysts wrote in a note.

A speculative frenzy is sweeping Wall Street and world markets

subscribe to our Telegram feeds.)Robinhood traders have become the talk of Wall Street this year by speculating on everything from tech options to airline shares. With these retail investors chasing the equity rally along with institutional pros,Lu Wang and Albertina Torsoli.Read More News on(Whats movingSensexandNiftyTracklatest market newsstock tipsandexpert adviceonETMarkets. Also,said Cedric Ozazman,according to SentimenTrader. It is now up roughly 100% from its March low.A speculative frenzy is sweeping Wall Street and world marketsTake Five: World market themes for the week aheadWall Street bets on world markets with BlackRock Global ETF15 Days Trial+Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp.Sentiment indicators are moving to euphoria,yields on junk bonds have tumbled far below levels at which high-grade borrowers could issue earlier this year.Why follow tips? Choose your winners rationally in 3 simple steps!has progressively cut funding premiums this year. The stockpile of negative-yielding corporate debt now stands at over $3 trillion.In the U.S.,click on link hightlighted in boldWith assistance from Cormac Mullen,the fallen-angel cruise ship operator,Animal spirits are famously running wild acrossWall Street,data compiled by Bloomberg show.the S&P 500 is trading with a sales multiple some 16% above the 2000 peak.

Brave New World: Markets rewarding capex, R&D more than buyback, dividend

Take Five: World market themes for the week ahead

Given heightened equity valuations, IPOs are again a viable exit route for sponsors, said Darrell Uden, global co-head of ECM at RBC Capital Markets.

48hrs data-no-of-words=987.0

as investors seek a stake in a technology of tomorrow — valuations be damned.To see your saved stories,Bespoke Investment Group noted.Brave New World: Markets rewarding capex,from solar energy toTesla Inc.shares,dividendFor average stock market investors,she will find the experience like walking through a mine-filled land or living in turbulent lands. Graham rule can be applied In Index investing also in addition to investing through debt and equity ETFs.World markets plunge deepens as virus panic worsensAccess the exclusive Economic Times stories!

quality-100/et-logo.jpg />World markets plunge deepens as virus panic worsensHow being in digital is saving MSMEs during pandemicHere are the signs of market froth in this year of death,it is possible the recent activity is just the start.Sharp Insight-rich,investment strategies and stocks alerts,Bitcoins more than 200% surge this year on a wave of new money shows cryptos time has come. To many on Wall Street,according to data compiled by Bloomberg. About 70% of them are trading above their IPO price.The virtual currency is surfing a wave of speculation for long-duration assets,if she does not choose stock investing as a full-time career.Other-wise,With corporate cash balances rising in recent years and deal volume as a percentage of market value still below a long-time average,it has gone on to lose money over the next three months.

We view it and other cryptocurrencies as digital tulips. We have no way to value them, Yardeni Research analysts including Ed Yardeni wrote in a note. We do watch Bitcoins price action as a gauge of speculative excesses.

Even Europes IPO market, which is much smaller in size than the one in the U.S. and less accustomed to big first-day pops, is going bananas.

DownloadThe Economic Times News Appto get Daily Market Updates & Live Business News.

A speculative frenzy is sweeping Wall Street and world markets

Animal spirits in corporate boardrooms are another infamous sign of a market top. This quarter is shaping up to be the strongest for deal-making activity since 2016 after a record third quarter. S&P Global Inc. buying IHS Markit Ltd. and Advanced Micro Devices Inc. taking over Xilinx Inc. are among the blockbusters.

Investors still cant get enough. The first-day return for IPOs averaged 40% this year, the highest ever other than 1999 and 2000, according to one estimate.

All the while the virus spreads, the economic cycle stays on life-support and businesses get thrashed by fresh lockdowns.

Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights:Times Syndication Service

Choose your reason below and click on the Report button. This will alert our moderators to take action

Spurred by endless monetary stimulus and bets on a post-pandemic world, day traders and institutional pros alike are enjoying the easiest financial conditions in history.

fromfamily officesto trend-following quants.BEHOLD AND CAUTION BUBBLE WILL BURST SOONER THAN LATER = WE ARE HEADED TO AN UPCOMING W SHAPED DOUBLE DIP GLOBAL RECESSION OF 2021 TO 2025Among the 44 firms that have listed on European exchanges since Nov. 9 — the day news of a coronavirus vaccine set off a bull run in equities — the average gain has been 16%,chief investment officer at Reyl & Cie in Geneva. People are now jumping to invest amid fears they will miss the Santa Claus rally.Take Five: World market themes for the week aheadIts volatility is a hard pill to swallow for most but the likes of JPMorgan Chase & Co. andNomura Holdings Inc.have noted plenty of interest,Grahams golden rule of 50:50 (50% Equity :50% Debt ) is enough to navigate through the stock market ,triple the broader index. High-beta shares are near their highest versus low-volatility ones since 2011.Global stocks are now worth around $100 trillion. American companies have raised a record $175 billion in public listings. Some $3 trillion of corporate bonds are trading with negative yields.Nothing evokes a stock peak like a rush to the public markets. Debuts from Snowflake Inc. to Airbnb Inc. took this years initial public offerings volume to a record $175 billion in the U.S.,Indepth stories across 20+ sectorsAll that has drawn unprecedented interest in the Renaissance IPO exchange-traded fund tracking new listings,Editorial and Expert opinionTo diehards,

Read More: BofA Flags Sell Signal for Stocks as Investors Rush Out of Cash

In a world of almost $18 trillion negative-yielding debt, investors have been forced to gorge on risky corporate bonds at record valuations.