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     Kubang Celebrity Bewarse Username: Kubang Post Number: 38705 Registered: 09-2011 Posted From: 161.141.1.1 Rating: N/A |
Here are the highlights from my late night reading yesterday: Some of the highest equity valuations in history The so-called complacency index at an all-time high The elevation of a can't-lose group of stocks (FAANG) The movement of more than a trillion dollars into value-agnostic investing The lowest yields in history on low-rated bonds and loans Yields on emerging market debt that are lower still The most fund raising in history for private equity The biggest fund of all time (soft bank) raised for levered tech investing Billions in digital currencies whose value has multiplied dramatically I absolutely am not saying stocks are too high, the FAANGs will falter, credit investing is risky, digital currencies are sure to end up worthless, or private equity commitments won't payoff. All I am saying is that for all the things listed above to simultaneously be gaining in popularity and attracting so much capital, credulousness has to be high and risk aversion has to be low. It's not that these things are doomed, just that their returns may not fully justify their risk. And, more importantly, that they show the temperature of today's market to be elevated. Not a nonsensical bubble - just high and therefore risky. Ignorance is bliss |