Posted on Feb 16, 2019 2021 at 18:07Updated Feb 16, 2019 2021 at 18:19
Too good to last? The climate of euphoria pushes stock market indices to new heights every day. Global equities are going through an extraordinary sequence. In recent weeks, they have climbed for twelve sessions in a row, which had not happened for 17 years. They recently exceeded for the first time the 110 trillion dollars of capitalization at the global level, driven by historic records on Wall Street, Frankfurt or Shanghai. After a three-day weekend, the S&P 500 resumed its wild race Tuesday at the start of session on Wall Street, crossing for the first time the 3,950 points.
Signs of exuberance are multiplying, from GameStop to cannabis values, including the boom in Spacs and the rise in cryptocurrencies. Even the riskiest corporate debt, commonly referred to as “junk debt,” is trading at record prices. And stock marketers are fueling the euphoria by buying unprecedented amounts of call options.