We also have crazy stories like the valuation of the New Jersey Deli listed in the US with a market cap of $120 million. Greenlight Capital’s David Einhorn notified the market about that one.
Meanwhile the market overall is powering to new highs, the S&P 500, the Nasdaq 100 hit all time highs and the EURO STOXX 50 is hitting a post-global financial crisis high, under the umbrella of fiscal dominance….paying for shortcomings on earnings, yield and market functioning (price discovery).
Another great note is from BofA global research named: Five reasons to curb your enthusiasm (on US equities):
The five reasons amount to: Euphoria (according to their sentiment measure), S&P 500 Index expected return now less than 2% for next decade, the outsized 12-month performance from March 2020 to March 2021, is >50%, which has not been seen since 1936, the fair value model @ 3635 S&P, the Equity Risk Premium is below 400 basis points – only happened twice before: Jan 2018, Sep 2018, with -10 and -20% return following.