Tuesday, February 23, 2021

🔵 A Bubble Relative to What?

Good morning. A growing number of analysts are calling the stock market a bubble. That's based on..
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. A growing number of analysts are calling the stock market a bubble. That's based on a number of factors, such as corporate earnings or sales relative to price. There's also the Buffett Indicator, showing that the value of the total stock market is $49.2 trillion, but annualized GDP is $21.9 trillion. That gives a total stock valuation of 224 percent of the current economy, a level that, historically, is well into overvalued territory.

But the funny thing about bubbles is how much higher they can go. And with interest rates near zero, the real question is whether the bond market, which has $17 trillion of assets with zero percent or even negative yields, is in worse shape on a valuation basis than the stock market.

What's the bigger bubble—stocks or bonds?

Hit "Reply" to this email and let us know what you think!


Now here's the rest of the news:

Sponsored Content
"Tesla Killer" Stock Set to Skyrocket 1,000 Times Over
My friends complain all the time about charging their Teslas. It takes hours. Imagine their surprise when I told them about a brand-new green technology that charges in less than five minutes!

 It lasts hundreds of miles longer, is cheaper than batteries and can charge forever. And best of all, the tiny little-known stock behind it trades for only a few bucks.

Click HERE for the full story.


MARKETS
DOW 31,521.69 +0.09%
S&P 3,876,49/td> -0.77%
NASDAQ 13,533.05 -2.46%
*As of market close
Tech stocks were crushed on Monday, as the Dow reported a modest gain.
Oil prices jumped 4.1 percent closing the day at $61.69.
Gold rallied 1.8 percent with the metal changing hands at $1,809.
Cryptocurrencies saw a large pullback, with Bitcoin last trading near $53,899.

Today's TOP TIPS
Cloud Profits Could Turn this Tech Giant Back to Bigger Growth
Tech companies are able to reap massive profit margins thanks to scale and costs. For instance, the cost of writing a piece of software is fixed. If a company can sell an additional copy, its marginal cost of production is minimal.

That's also true of other tech services as well. It's why a number of companies building out their cloud capabilities are able to reap massive profit margins.

» FULL STORY

Insider Trading Report: Henry Schein (HSIC)
Mohamad Ali, a director at Henry Schein (HSIC), recently picked up 1,000 shares. The buy cost just over $65,000, and is an initial stake by the director.

Insider trends also show that it's the first buy at the firm in the past three years. Insiders have been exclusively sellers over that timeframe, including both directors and C-suite executives. The sales have occurred on a regular basis, so some insiders have sold at lower prices than where shares trade today.

» FULL STORY

Unusual Options Activity: Exxon Mobil (XOM)
Energy giant Exxon Mobil (XOM) has been moving higher along with the price of oil in the past few months. At least one trader sees shares taking a breather from here.

That's based on the April $55 put options. The option expires in 52 days. Over 50,800 contracts traded against a prior open interest of 1,055, for a 48-fold jump in volume. The trade is slightly in-the-money as shares are currently going for about $54.50.

» FULL STORY

IN OTHER NEWS
White House Looks at Stock-Trading Tax After GameStop Saga

The White House has come out in favor of a financial transaction tax. Such a tax would be 0.1 percent on each trade (to start), and would raise up to $777 billion for the Federal Government. The tax might not be high enough to completely deter traders, however, especially those seeking stocks capable of moving double-digits on a daily basis.
Boeing Takes a Hit on Engine Failures

Boeing (BA) can't seem to catch a break. After a viral picture of an engine part that crash landed in a yard popped up on social media, the company saw shares drop Monday, although they came off the lows during the day. The FAA has ordered inspections of all Boeing 777 aircraft with similar Pratt & Whitney engines. Pratt & Whitney is owned by Raytheon Technologies (RTX).
Elon Musk Tweets Bitcoin Prices are High, Prices Tank

RBitcoin prices dropped under the $50,000 level briefly on Monday, but recovered nearly half their losses. The move came after Tesla Motors (TSLA) CEO Elon Musk tweeted about the cryptocurrency (again) stating that this time prices seemed too high. At one point over the weekend, BTC ran up to over $58,000, and Tesla was up nearly $1 billion on its initial $1.5 billion investment.
Taco Bell Joins the Chicken Sandwich Wars

Chicken sandwiches are in, and even Taco Bell, owned by Yum Brands (YUM), is getting in on the profits. The company's latest product is a fried chicken sandwich taco. Served in a piece of puffy bread shaped like a taco, there's both a regular version and a spicy version. The move comes after Wendy's (WEN) and McDonald's (MCD) have unveiled more chicken sandwich offerings. (Maybe bring back the Mexican pizza?)
LVMH Takes 50 Percent Stake in Armand de Brignac

French luxury conglomerate LVMH has taken a 50 percent stake in champaign brand Armand de Brignac, owned by rapper Jay-Z and started in 2006. The brand, nicknamed "Ace of Spades," sold more than 500,000 bottles in 2019, and estimates that sales were off 18 percent in 2020. The specific price of the stake sold to LVMH, owner of Moet Hennessy and Louis Vuitton, among others, has yet to be disclosed.

S&P 500 MOVERS
TOP
PBCT 14.924%
TRIP 11.999%
AAL 9.422%
RCL 9.332%
VNO 9.208%
BOTTOM
VTRS 14.882%
ENPH 11.532%
TSLA 8.55%
JD 9.946%
TER 7.153%

Quote of the Day
Bitcoin prices have continued their meteoric rise with Tesla, BNY Mellon and Mastercard's announcements of greater acceptance of cryptocurrencies. But fintech innovation and increased demand for digital services are the real Covid-19 story with the rise of online start-ups and expansion of digital platforms into credit and payments.
- JPMorgan Chase, in a research note, on the rising competition between traditional banking systems and fintech plays, and why the rally in Bitcoin may take a backseat to those trends.

Sponsored Content
The "Tesla Killer" Is Here...It May Have Just Made All Electric Cars Obsolete.
It takes moments to charge. It's 100% emission-free. It costs next to nothing. And it involves no fossil fuels.

That's why Bloomberg projects it to "skyrocket 1,000 times over." And best of all… The tiny, little-known stock behind the "Tesla Killer" trades for just a few bucks.

Don't wait another moment. It's set to trade higher than Tesla within the next few months.

Right now you can lock in shares for a few dollars... instead of more than $400 like Tesla.

Click HERE for the full story.


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