atans1

Riding the melt up tornado

In Financial competency, Financial planning on 06/12/2020 at 4:00 am

Goldman Sachs said it believed the US S&P 500 equity index would go as high as 4,300 by the end of next year: 20% more than present level.  But some of its clients balked at the 4,300 target, arguing it should be even higher. others say 3800, 5% more

But some felt it was too bullish, unnerved by the potential for rising inflation expectations push up government bond yields and in turn chip away at equities.

Jeremy Grantham a well respected fund manager thinks a melt up is happening: markets have smashed past the “full bull” stage and are in a late-bubble “melt-up” phase that rivals the two biggest bubbles of the past century.

Btw in late 2019, he was predicting a melt up this yr. When the market fell in March 2020, he looked silly.

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  1. Hey no worries man! LOL!

    Grantham looked silly … for all of 3 months.

    YTD the Nasdaq 100 ETF has risen 43%.

    Over the past 10 years the QQQ etf has gone up 528%. A modest US$200K investment will be worth US$1.256M today (plus change … it’s dividends are tiny).

    During this 10 yrs, USD has fluctuated against SGD, but is essentially flat to very slightly appreciated against SGD today.

    Wish I had put a bit more into it.

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