U.S. equity risk premium has fallen to its lowest level since the aftermath of the Dot Com Bubble.
This is the premium that investors receive to compensate them for taking on additional risk in the stock market instead of treasuries. Source: Barchart, BofA
Reddit made its IPO filing public ahead of a planned stock market debut in March.
It also disclosed $90.8 million in losses and revenue growth of roughly 21% in 2023. REDDIT IPO STATS: Ticker: $RDDT Exchange: NYSE Deal size: $100m (we est. $750m) Mkt Cap: Est. ~$5+ billion Annual Sales: $804m Net Loss: -$91m IPO Timing: Est. mid-March
S&P, NASDAQ 100 & DJIA closed at RECORD HIGH
Source: Bloomberg
The chart is a log graph of $1 invested in the S&P 500 in the year 1950 by Personal Finance Club.
They listed all of the market crashes that were 15% or more. They removed the Y-axis, but it shows $1 growing to over $1,000! Note that there were many -10% corrections over the period but that only -15% and worse are listed below
In case you missed it. Chinese stocks have now fully recovered from all year-to-date losses and are now green on the year.
Source: Barchart
Nikkei Parties Like It's 1989
A lot of attention has been focused on the Nikkei 225 index, which topped its all-time high, surpassing 39,000 and breaking the previous record of 38,957 set on the final trading day of 1989. The 34 years it has taken to regain its footing is also a record for a major market, and it's a decade longer than Wall Street took to recoup its losses from the 1929 crash and the Great Depression. source : bloomberg, reuters
Japan's Nikkei has hit a historic high not seen since 1989, marking an epic come-back for the country's stock market.
The Nikkei 225 hit an all-time high of 38,924.88 as robust corporate earnings and steps aimed at boosting investor returns fuel a blistering rally in Japanese equities this year. Nikkei and Topix have been standout outperformers in Asia Pacific, up more than 10% in 2024 after surging more than 25% in 2023 — their respective best annual gain in at least a decade. Source: Bloomberg, CNBC
Should you exit equities (or avoid investing into equities) when they hit all-time high?
The answer is 'NO'. Returns have been higher than average, following all-time highs. More importantly, exiting at all-time highs is disastrous for your return! Massive chart by Duncan Lamont / Schroders thru Jeroen Blokland.
