Pop the bubble
Good morning readers, Phil Rosen here. Today's not just the last trading session of the week, but it's the Friday before a long weekend.?
That's exciting, but to me it isn't half as cool as this new K-Pop ETF that just launched, which gives traders exposure to South Korea's entertainment sector.?
It's the latest investment option for those interested in niche, theme-based strategies like space travel (ticker UFO) or meme stocks (MEME).
Hopefully that's enough tomfoolery to get you to Tuesday, as I won't be writing to you on Labor Day.?
By the way — look out for more jobs data this morning to get the latest on the US economy. Your best bet is to keep up with coverage from Insider's economy team, which will have the?most up-to-date insights on August non-farm payroll data due out at 8:30 a.m. ET.
On that note, below I'm breaking down one veteran investor's bleak market outlook, and why he expects a brutal sell-off ahead.
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1. The "superbubble" in stocks is entering its final stages, according to Jeremy Grantham, who made a name for himself predicting a number of bubbles would burst ahead of huge crashes, including the dot-com crash and the 2008 crash.?
"Prepare for an epic finale," Grantham said in a note to clients Wednesday, adding that the recent rebound in stocks marked a false dawn. "If history repeats, the play will once again be a Tragedy."
Grantham forecasted a brutal selloff in which assets ranging from stocks to properties plunge in value.?
He rang a similar bell back in January, when he warned that a superbubble was about to implode and that stocks could crater 50%.?
At one point in June, the S&P 500 traded 20% below its January peak, though they have since recovered some of those losses.?
But even more so now than before, Grantham sees an unprecedented mix of dangerous elements among the housing market, inflation, geopolitics, and energy.?
"Between COVID in China, war in Europe, food and energy crises, record fiscal tightening, and more, the outlook is far grimmer than could have been foreseen in January," he said.??
While Bank of America isn't as gloom-and-doom as Grantham, the bank's analysts reiterated a downbeat outlook of a 9% drop in the S&P 500 by year-end, reiterating their view that the summer of gains since June was nothing more than a bear market rally.?
"There are still no real signs of a bull market," BofA strategists wrote Thursday, also noting that indexes haven't seen the full impact of the Fed's monetary policy moves.?
What comes next for stocks and do you think investors are about to see a market bubble pop? Sound off in the comments section below.
In other news:
2. These small-cap stocks are trading cheap and offer huge upside, according to Morningstar analysts. Here are seven under-the-radar names that belong to a select group that has crushed the broader market this year. Get the full list.
3. The chief investment officer of a $1.5 billion firm explained how to invest in the companies that benefit from recessions. CDAM's Scott Davies said investors shouldn't overlook "compounders" that can benefit from an economic downturn and have helped him beat the market this year. These are the 10 stocks he likes right now.?
4. Here's what the rest of 2022 looks like for the US housing market. It has just hit a "turning point" in home affordability, a top executive at the Mortgage Bankers Association said. Here are his top housing market predictions going into 2023.?
5. Americans who have changed jobs in the last 12 months have seen their pay climb 16.1% in the year through August, ADP reports. The jump in quitters' wages far outpaced that of job keepers, who only made a 7.6% gain. The discrepancy highlights the historic gap between available workers and labor demand.?
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This newsletter was curated by Phil Rosen.
Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan
2 年That's His Opinion, But The Core Indicators Says No.
WHO AM I?
2 年it did crash 50% overall however nothing to worry about we are bound to lose sometimes Business Insider
Owner/Acting CEO Hotta Entertainment (ASCAP)
2 年I can do better
Hard work pays off.
2 年Superbubble crash is somehow forecasted because of multiple incidences happening both geopolitically and financially across the globe. At least since 2019..experts know that stock crash is bound to happen. I think dot.com crash and the 2008 crunch were much smaller compared to what is comming. There are 2 basic reasons for that. Dot.com and 2008 stock crash came quite suddenly without any major events happening prior to those two crunches. We witnessed global recession after those 2 events but that somehow became manageable. Now only COVID19 has plunged the economy of the globe as everything has been on a stand still for more than a year. War in Ukraine with oil and gas crisis in Europe, only bear stocks, hyperinflation, immigration crisis, Brexit, political crisis in USA, decades of corruption in 3rd world countries, crisis in shipping industry, volatile situation in Taiwan, evacuation of US troops from Afghanistan after spending trillions of dollars, refusal of USA for NATO payments, not to mention regional wars which are costly even for booming economies. One thing is certain, this superbubble crash will be nothing like dot.com or 2008..
Content Writer, Social Media Manager, Business Development, Administrative
2 年Awesome!!