The coronavirus pandemic seems to have accelerated a longer term trend in sharemarkets, exaggerating a pre-existing divergence between "growth" and "value" stocks.
Massive infusions of liquidity and ultra-cheap credit have forced investors to take increasing risks, encouraging/coercing them to chase the stocks that hold some promise of generating acceptable returns without pricing in the risks. Even if the historical relationship between growth and value stocks isn’t restored, the current acceleration of the divergence in their pricing could easily, and violently, be narrowed if there were kind of shock to investor confidence.
"At that point most projects become viable and, as corporates scramble for deals that yield any meaningful return, the pool of viable opportunities diminishes, forcing an even more aggressive competition, driving both cost of equity and returns ever closer towards zero."His explanation for why tech stocks appear to defy gravity is predicated on a transition from the Industrial Age to the Information Age and a less capital-intensive, less capacity-constrained, less labour-intensive era.
What a plan by the Fed. Produce $3T out of thin air, pick 10 of the biggest stocks and pump into infinity. Index is up and everyone is happy. The ultimate bubble. Well done.
Just in time for Biden to take power.... Wait did not the same thing happen before Obama got to power?
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Source: newscomauHQ - 🏆 9. / 77 Read more »
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Thousands urged to isolate even after negative test, new advice saysThe latest advice was issued as known clusters of the virus in Sydney continued to grow while the source of two outbreaks and several cases of community transmission remained unknown | AlexSmithSMH rachelclun AlexSmithSMH rachelclun This is not new advice. It's always been the case. AlexSmithSMH rachelclun Have we reached peak ridiculous yet/ now we lock up pple who have a damn cold, when does this lunacy stop, it's a nothing much virus, 6 months of this derangement and still nothing much has happened but endless reams of utter nonsense. Shame on you feeding this AlexSmithSMH rachelclun The problem is most of those forming the queues are are not the problem people. Those we want to catch are probably avoiding testing. Young party goers wont risk quarantining.
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Record 484 new coronavirus cases in Victoria, two more deathsPremier DanielAndrewsMP has pleaded with Victorians, particularly casual workers with no leave entitlements, to stay home when sick. He urged workers with no access to paid sick leave to call 1800 675 398 to apply for a $1500 government hardship payment. DanielAndrewsMP Anyone tried calling this number yet? There is no menu option to go through to for an enquiry of this nature 🤷🏽♂️ DanielAndrewsMP How about fining those who don’t self isolate after getting tested and afterwards found to be positive? It’s clear they make up the majority of those who continue to spread the virus and lead to Victoria’s six week lockdown being possibly extended! DanielAndrewsMP Easy for you say for sick worker to stay home with no leave entitlements,what do people do to put food on the table & pay those endless bills the Vic.government keeps giving them? Those bills don’t take days off when workers are ill. It’s easy for you as you on the public purse!
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