Bloomberg has an article with some excellent charts on the ongoing Market Mania. The article is aptly titled, ‘It’s Market Mania for Assets All Around the World’ [Link]
This article has a dual message. On the one hand, it appears to feel that there is a ‘mania’. Manias are, by definition, not rational. On the other hand, it does point out that global economies are booming in a synchronized fashion:
From Germany to South Africa, stocks around the world are in the throes of a spirited bull run, with global growth firmer and more synchronized in years….. …. investors bet the bullish business cycle will offset the hawkish monetary-policy outlook.
It wants to have it both ways. But, if we are left confused as to whether this is all rational or a mania (bubble), look no further than this article. Company changes name and the stock flies! – sounds familiar from 1999?
If you are still not convinced, check out this article too:
Wednesday morning, Amicus Therapeutics Inc. reported a final-stage failure on a rare-disease drug and said it was abandoning the medicine. But market reactions to these disappointments have been relatively muted. Amicus shares actually rose on Wednesday despite its bad news….
…. One of the best examples of the sentiment shift is Alnylam. Back in 2016, it stopped development on a leading drug due to a different safety issue, and its already weak shares plunged nearly 50 percent. In contrast, Alnylam shares fell nearly 16 percent after it announced its trial pause last week, but have since recovered nearly 10 percent. It’s true that last year’s news was much more significant than last week’s. Still, the fact that investors are mostly shrugging now says a lot.