Looking Past Hopium Towards Real Numbers...

April 25, 2024 00:14:15
Looking Past Hopium Towards Real Numbers...
Digital Finance Analytics (DFA) Blog
Looking Past Hopium Towards Real Numbers...

Apr 25 2024 | 00:14:15

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Show Notes

The value of stocks are driven partly by momentum, through perhaps we should really call this hopium, as its really investors betting with their gut, and the cold hard realities of financial results. Markets have been leveraged higher by rate cut expectations and the prospects of AI. But when the numbers come in at results time, sometimes hopium goes away. Especially when bond yields take the discount rate higher, (the US 2-year is currently at 4.925 and the 10-year at 4.646) so reducing the future value of earnings. Australian markets were closed for the ANZAC holiday. We will remember them. […]

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