The S&P 500
is up over 1% for the year. Not shabby for just a few days of trade, but that pales in comparison to some assets, with bitcoin
up another 20% this year, after a 300% return in 2020. And electric-car maker Tesla
has gained 20% so far in 2021, after around a 700% gain last year.
On that note, we move onto our call of the day, which is all about bubbles. It comes from a survey just published by Deutsche Bank, who asked, among other questions, where investors are seeing the froth right now.
Some 89% of respondents believe markets are facing bubbles, and two stand out — U.S. technology stocks and bitcoin. The latter is getting close to “extreme bubble” territory.
“When asked specifically about the 12-month fate of bitcoin and Tesla — a stock emblematic of a potential tech bubble — a majority of readers think that they are more likely to halve than double from these levels 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 monthly fund manager survey, knocking tech stocks off the highest perch.
When it comes to bitcoin though, enthusiastic investors don’t seem to scare so easily:
Another question asked in the Deutsche Bank survey was whether one potential bubble popper — the Federal Reserve tapering its asset purchasing program — was likely.
“71% of respondents do not believe that the Fed will taper before year-end, which is in line with what Fed governors had been saying forcefully by the end of last week, but a quarter of readers may think that economic growth/markets could force their hand,” said Reid and the team.
“Just 25 doses have been given in one lowest income country — not 25 million, not 25,000 — just 25. I need to be blunt: The world is on the brink of a catastrophic moral failure.” That was the World Health Organization’s director-general Tedros Adhanom Ghebreyesus, who had harsh words about global vaccine inequalities on Monday.
Also from that Deutsche Bank survey were a few questions about COVID-19 vaccines and lockdowns. It seems later this year is when life is expected to return to “normal.”
And when it comes to taking vaccines, more seem willing than last month:
Like in that Tom Hanks movie? A California man made an airport his home for three months.
And Redditors gushed about everything they love and miss about airports right now.
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