What we’re reading (1/9)
“Risk Bubbles Are Deflating Everywhere, Some Market Watchers Say” (Bloomberg). “To Bank of America strategists including Michael Hartnett, a bubble is “simultaneously popping” in assets including cryptocurrencies, palladium, long-duration technology stocks, and other historically risky areas of the market. The winding down in speculative areas comes as investors brace for the U.S. Federal Reserve to pick up the pace of policy tightening.”
“Reddit Taps Morgan Stanley, Goldman Sachs For IPO - Source” (Reuters). “Reddit had confidentially filed for an IPO in December and is aiming for a valuation of over $15 billion at the time of its flotation. It was valued at $10 billion in a private fundraising round led by Fidelity Management in August.”
“Americans’ Finances Got Stronger In The Pandemic—Confounding Early Fears” (Wall Street Journal). “The personal saving rate—a measure of how much money people have left over after spending and taxes—hit a record 33.8% in April 2020, according to the Bureau of Economic Analysis. The rate averaged just under 8% for the two years before the pandemic began.”
“Data Update 1 for 2022: It is Moneyball Time!” (Musings on Markets). Some good reminders from the “Dean of Wall Street” along with his annual data update: “1. More data is not always better than less data…2. Data does not always provide direction…3. Mean Reversion works, until it does not…4. The consensus can be wrong.”
“The Market For Prestige Whiskeys Is Drawing Scammers And Counterfeits As Coveted Bottles Sell For Thousands Of Dollars” (Insider). “Counterfeiters are taking advantage of the boom in domestic sales of super-premium American whiskey, or bottles valued at more than $50. Demand is well-outstripping supply at the very high end of the market where bottles sell for at least $500 and the demand has created a thriving secondary market.”
