Investors are returning from the long holiday weekend in an optimistic mood, and some attribute that optimism to an imminent change of guard at 1600 Pennsylvania Avenue. And we have winnings and reviews from Biden Treasure’s best selection, Janet Yellen, ahead.
The S&P 500 SPX,
increases by about 0.3% a year after last week’s decline. This is evident compared to some assets, with Bitcoin BTCUSD,
27% more this year, after a 300% return in 2020. And electric car maker Tesla TSLA,
it has gained 17% so far in 2021, after gaining about 700% last year.
Read: Tesla’s new $ 950 target on Wedbush is the highest on Wall Street, but analysts still won’t say buy
In this note, we move on to ours call of the day, which is about bubbles. It comes from a survey just published by Deutsche Bank, which asked, among other questions, where investors are seeing the foam right now.
89% of respondents believe that markets face bubbles and highlight two of them: US technology stocks and bitcoin. The latter is approaching the territory of the “extreme bubble”.
“When asked specifically about the fate of the twelve months of bitcoin and Tesla, a flagship stock of a potential technology bubble, most readers believe they are more likely to be halved than twice those 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 about bitcoin: the cryptocurrency would have surpassed the “busiest position” in the Bank of America’s monthly fund managers survey, removing technology stocks from the highest perch.
However, when it comes to bitcoins, enthusiastic investors don’t seem to be scared so easily:
Another question asked in the Deutsche Bank survey was whether there was likely to be a possible bubble burst (the Federal Reserve would reduce its asset purchase program).
“71% of respondents don’t think the Fed will shrink before the end of the year, which is in line with what Fed governors had said bluntly late last week, but a quarter of readers can thinking that economic growth / markets could go hand in hand, ”Reid and the team said.
Read: BlackRock’s CEO says a leading investor controls concerns about valuations and inflation
The markets
Technical securities futures NQ00,
by the way, they are moving forward, followed by the future Dow YM00 and S&P 500,
ES00,
with SXXP European shares,
and a mixed day for Asian markets. The International Energy Agency reduced oil demand forecasts for 2021. Crude oil prices CL.1,
they seem fearless.
The appointment
“Only 25 doses have been given in a lower-income country – not 25 million, not 25,000 – only 25. I need to be blunt: the world is on the brink of catastrophic moral failure.” This was the director general of the World Health Organization, Tedros Adhanom Ghebreyesus, who on Monday had harsh words about global vaccine inequalities.
The buzz
Bank of America BAC,
the shares fall after exceeding projected profits but disappoint on the revenue side, while Goldman Sachs GS,
shares increase after good results. Streaming giant Netflix NFLX,
is due after closing. See earnings preview.
In a statement prepared ahead of her confirmation hearings, Treasury candidate Yellen says U.S. policy must “act in a big way” to help Americans struggling amid the COVID-19 pandemic. The United States is also expected to not want a weaker dollar.
The incoming Biden administration says travel restrictions on coronavirus apply to travelers from Europe and Brazil, after President Donald Trump just lifted the ban. This is how COVID-19 deaths are increasing at 2/3 of US states.
The California state epidemiologist has advised stopping the deployment of more than 300,000 doses of Modern Biotechnology MRNA,
vaccine, after possible allergic reactions of some receptors.
Coherent COHR,
the shares fly after optical component maker Lumentum said it agreed to acquire the laser maker in a deal with $ 5.7 billion in cash and shares.
WU of Western Union,
the shares increase after the money transfer company announced a deal to be in the stores of retail giant Walmart WMT,
The tweet
The graph
This question from Deutsche Bank also asked some questions about COVID-19 vaccines and blockages. It looks like the end of this year is when life is expected to return to normal.
And when it comes to taking vaccines, it seems there are more wills than last month:
Random readings
Like in that Tom Hanks movie? A California man turned an airport into his home for three months.
And Redditors rushed over everything they like and miss at airports right now.
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