The U.S. is approaching the end of a “superbubble” spanning across stocks, bonds, real estate and commodities following massive stimulus during the COVID pandemic, potentially leading to the largest markdown of wealth in its history once pessimism returns to rule markets, according to legendary investor Jeremy Grantham.
“For the first time in the U.S. we have simultaneous bubbles across all major asset classes,” said Grantham, co-founder of investment firm GMO, in a paper Thursday. He estimated wealth losses could total $35 trillion in the U.S. should valuations across major asset classes return two-thirds of the way to historical norms.
Any thoughts?
B
Will be back in at the bell, the 635 shares I sold last week. Only now I get 700 shares, same cost! Plus adding 200 more shares. USB, very strong payment systems revenue. And increasing rate margins will outpace expenses. Great dividend. Solid bank with no baggage!
w
Do you guys ever use (http://Themaxgains.tech)? It is way better than trading USB all day. Their tips actually go up! Haha
B
As I suspected and stated last week. A hit or a miss on analyst projections, USB was going to give up some gains. Been a longggg time investor, but sold half of my USB last week at 62.88. Will be putting that back in tho, and more. USB will still outperform the market this year. Gains in the market will not be so easy this year.
S
Added at $59 in the pre-market. This stock will outperform this year at these levels
j
Pre market all settled, USB will most likely open positive. To those concerned regarding the merger, it should not be a concern. The fed is talking about regulating mergers of 100 billion and above, the UBS merger total is approximately 8 billion. So chill everyone USB will do just fine.
w
Nice to see ATH--it figures my div was reinvested today (yes, I'm splitting hairs).
(Fidelity buys two days before pay date allowing proper for settlement)
s
(http://alert-sounds.com/) is truly one of the best stock advice newsletters out there! Their daily emails give me all the information I need to trade more wisely each day. I rely heavily on their watchlists and recommend all traders should do the same!
J
I was looking at some bank metrics today and saw some surprising numbers( to me). Banks as a general rule have huge cash flows. After all, they're in the business of buying and selling money . Five banks with good free cash totals and FCF per share were no where close to Apple when it came to profits.
FWIW
C
Added more under $56...
B
near all time highs! We all know banks should do well with rising rates. But we knew that the past 2 qtrs. And after nice earnings reports, USB drops! Over the years the market doesn't seem to respect USB like other Bigs. Will we see the same next week? Possibly time to unload some USB?
J
Jamie Dimon said that volatility could be elevated in financial markets as the Federal Reserve aims to navigate a COVID-induced surge in inflation. He also said, "I'd personally be surprised if it was just four,” rate hikes.
FWIW
S
Misses by $.03, misses on revenues.
M
I pulled the trigger. Added more to my kiddie. Not often you come across a high paying dividend stock on sale coming into a new year, 57.95
A
ill advised to sell this bank stock now
C
52 Week high. Congrats fellow longs!
j
Absolutely no news to warrant this AH drop. Probably will gain back prior to open tomorrow morning.
M
I have no idea why USB is down? Fed actions will profit USA. Obviously, retail investors have no idea what this company does? Well, I have to tell you all. It is a South African mining company. They mine Moneinthuswalit. It is heavily sat upon in EV's and is used often.
J
One analyst opinion:
"Banking stocks had a strong 2021 and while some of the big names will struggle to match those results, analysts at JPMorgan are still bullish on the sector.
Bank of America BAC, for example, will be a major beneficiary of an increase in interest rates. U.S. Bancorp USB will benefit from a pickup in airline and travel spending later in 2022. PNC PNC will see short-term benefits from merger cost savings while it invests in "large excess liquidity."
“Large bank stocks have sold off and have sharply lagged the S&P 500 since the omicron news hit,” JPMorgan analyst Vivek Juneja said in a recent research note, according to MarketWatch. “Valuations are attractive and should rise as the Fed starts tightening.”
The U.S. is approaching the end of a “superbubble” spanning across stocks, bonds, real estate and commodities following massive stimulus during the COVID pandemic, potentially leading to the largest markdown of wealth in its history once pessimism returns to rule markets, according to legendary investor Jeremy Grantham.
“For the first time in the U.S. we have simultaneous bubbles across all major asset classes,” said Grantham, co-founder of investment firm GMO, in a paper Thursday. He estimated wealth losses could total $35 trillion in the U.S. should valuations across major asset classes return two-thirds of the way to historical norms.
Any thoughts?
(Fidelity buys two days before pay date allowing proper for settlement)
FWIW
FWIW
"Banking stocks had a strong 2021 and while some of the big names will struggle to match those results, analysts at JPMorgan are still bullish on the sector.
Bank of America BAC, for example, will be a major beneficiary of an increase in interest rates. U.S. Bancorp USB will benefit from a pickup in airline and travel spending later in 2022. PNC PNC will see short-term benefits from merger cost savings while it invests in "large excess liquidity."
“Large bank stocks have sold off and have sharply lagged the S&P 500 since the omicron news hit,” JPMorgan analyst Vivek Juneja said in a recent research note, according to MarketWatch. “Valuations are attractive and should rise as the Fed starts tightening.”
FWIW