Investors Betting on Record Stock Market Run

In two months, the stock market’s recovery from the financial crisis will reach nine years, according to a recent CNBC article. “To be aggressively optimistic on this stock market now is to bet that it can challenge the greatest bull market of all time—the 13-year run that ended in early 2000.” Elevated valuations are also showing that U.S. stocks are more richly valued than in any period except the late 1990’s, the article says, and… Read More

Investors May Be Overconfident

Investors are expressing concern about the level of debt companies are carrying rather than focusing only on growth, according to a recent Bloomberg article. The junk bond market, however, doesn’t share the same concern. Analysis by Societe Generale SA shows that, “amid rising interest rates and growing corporate leverage, investors have cast aside debt-riddled companies in favor of cash-rich businesses,” according to the article. Societe’s global head of quantitative strategy Andrew Lapthorne asserts, “This kind of… Read More