Buyers guess on Kroger, Costco as Covid-19 circumstances spook Wall Avenue

How US stocks plummeted As of Monday, investors are betting on a familiar category that could grow if Covid-19 cases continue to rise: grocery stores.

Shares in Kroger, Albertsons, BJ’s wholesale club were awake from Monday lunchtime. Cost co hit an all-time high of $ 415.32.

These stocks were a rare ray of hope on Wall Street, according to Dow Jones Industrial seems to be heading for the biggest decline of the year. Several other stay-at-home stocks, including Clorox and Peloton, were also in the green.

Grocers were some of the biggest beneficiaries of the pandemic over the past year as restaurants temporarily closed and shoppers stocked up on basic groceries from the pantry and cooked at home.

Dealers face tough comparisons in the quarters ahead as they face unusually high sales growth numbers. Investors and companies have been trying to figure out when – and to what extent – consumers will return to their eating habits as more people are fully vaccinated and restrictions wear off. In the last few weeks, however the rise of the Delta variant of Covid-19 – especially in parts of the country with low vaccination rates – made these predictions difficult.

Brian Yarbrough, an Edward Jones retail analyst, said investors were shocked by news of the Delta variant and the withdrawal of reopening in some parts of the country – like the return of indoor mask mandates in Los Angeles. He said this is causing some to revert to tried and tested pandemic names.

“You saw a flight to be safer,” he said. “If that happens and Covid comes back up and things shut down, you would see the grocery store taking advantage of it.”

Michael Baker, retail analyst at DA Davidson, said the grocer pop in the market is “the opposite of what you see in airline stocks”. From Monday noon, Airlines and cruises were among the hardest hit sectors as investors feared travel trends could slow or reverse.

Grocery sales are still above pre-pandemic levels, according to IRI, which tracks sales patterns in supermarkets, large retailers and convenience stores. Overall demand for packaged consumer goods in the week ending July 4 was roughly the same as last year, although sales of perishable and non-edible items declined slightly overall.

Baker said some people developed new habits over the past year from cooking more. Besides, he said a labor shortage has impacted customer service in some restaurants, giving customers another reason to eat at home instead.

“The American public may have learned that it is good to eat at home,” he said. “You spend a lot of time at home with your family and that’s more economical.”

He said the latest data also corroborates the stickiness of foods at home. Receipts in grocery and beverage stores rose in June compared to the previous month by 0.6%, according to the Ministry of Commerce. On the flip side, restaurant food was still down 8% year over year in July based on OpenTable reservations tracking seating through online, phone, and walk-in reservations.

However, not all beneficiaries of the pandemic saw their fate change on Monday. Shares in Walmart, Home depot and Lowes fell on Monday.

Yarbrough attributed this to Walmart, which sold general merchandise and discretionary items instead of being a pure grocer. And, he said, investors might assume that retailers that do better during the delta variant’s proliferation might look different as the government takes different action. For example, instead of shutting down non-essential retailers, local officials can bring back masking requirements and consumers can choose to skip or cut down on trips to restaurants. That would mean less dramatic sales increases for home improvement retailers who were able to stay open as key retailers during the lockdown, he said.

Yarbrough said he remains convinced dining out will return at the expense of selling groceries. However, he said this could take longer – and could be interrupted by spikes in Covid cases.

“Since there is the Delta variant, it can make people afraid of saying, ‘You know what, I’m going to start staying home for a while until this is over,'” he said.

Traders ought to keep the course

CNBCs Jim Cramer said on Wednesday that investors will not need to make major changes to their strategy because of the Fed chairman Jerome Powell‘s closely watched press conference.

“You don’t have to do anything,” he said “Bad money” Host said after parsing Powell’s comments earlier in the day and the updated projections from the monetary policy arm of the Fed.

If anything, Cramer said he believed the decline in stocks on Wednesday, combined with new insights into the Fed’s mindset, could open up opportunities for investors.

“I think you should just stay on track and maybe take advantage of this decline to buy some quality stocks, especially industrials, right into the teeth of a downturn,” said Cramer.

“With the Fed pulling itself out of the equation for at least six months, maybe longer, industrial companies have a lot more leeway,” he said, adding that he shares the same forecast for the technology sector.

The Federal Open Market Committee left rates near zero on Wednesday, but central bank officials pointed to an increase could come as early as 2023. In March, the FOMC expected rates to stay constant until at least 2024.

In general, Cramer Powell applauded for giving a “healthy” outlook on the US economic recovery as further coronavirus-era restrictions lift and activity picks up.

“Also the idea that Powell has to work out the game plan for the next two or three years right now is absurd,” said Cramer.

Snowflake CEO urges buyers to be affected person with inventory throughout cloud transition

Frank Slootman, CEO of Snowflake, said Wednesday that shareholders will have to be patient with the company’s stock as the cloud transition won’t happen overnight.

“Our business is really going to be real for significant, long periods of time,” Slootman said in an interview with CNBC’s Jim Cramer on “Bad money.” “This is kind of a message to investors to really understand that we are signing up for a trip here that will last five to ten years.”

The comments came when Snowflake’s shares fell as much as 8% in post-company expanded trading reported first quarter results.

While revenue rose 110% year over year to a better than expected $ 228.9 million, the data analytics software company also posted a net loss of $ 203.2 million. That’s an increase of $ 93.6 million over the same period last year. At the same time, Snowflake has raised its full-year forecast for product sales.

Snowflake went public in September a record-breaking IPOThe shares close this first day of trading at $ 253.93. However, the stock was below that level at the close of trading on Wednesday. Snowflake shares have also fallen 16% since the start of the year as investors moved from high-flying growth names to economically sensitive companies that can benefit from Covid’s rebound.

Despite recent moves on Wall Street, Slootman emphasized that the company’s software becomes increasingly important as companies move away from databases that are tied to hardware.

“These are big, big changes we’re seeing in the marketplace and we’re just super happy to be in the thick of it and make it possible,” he said, adding that Snowflake has its focus on large-scale growth. “We are not a company that grows at any price.”

The place Buyers Are Placing Their Cash as Inflation Issues Develop

Text size

Funds that invest in financial stocks have attracted cash.

Photo by Amy Shamblen

Rising inflation expectations have sent remarkable flows of money into assets that could benefit from it. Some attract more money than others.

Funds invested in inflation-linked bonds whose face value increases in line with the consumer price index, have seen strong inflows since last May to a

Deutsche Bank

Report released on Friday. The amount of money poured into these funds last year was the highest since 2010.

Investors have shown a much greater interest in inflation-linked pension funds than they have in bonds in general. Not surprisingly, for most of the two decades or so since 1998, stocks and bond yields have shown a positive correlation. That is, when stock prices came under pressure, bond yields fell and prices rose. Allocating some of their assets to bonds gave investors a cushion as stock prices fell.

Recently, however, the pattern has not held up. The degree of correlation between bond yields and stocks has decreased since last August and has been negative since February. With stocks sold, bond prices have come under pressure as their yields have risen. This means that bonds may no longer be a good diversifier for portfolios, making them less attractive to many investors.

Historically, this flipped relationship was more likely to occur when inflation risks were paramount, as was the case in the three decades from the mid-1960s to the late 1990s, wrote Deutsche Bank strategist Parag Thatte. This is because inflation increases the possibility of monetary policy tightening, which is a risk for both stocks and bonds.

Funds that invest in energy and materials stocks that In an inflationary environment, performance is usually better and have suffered outflows in recent years, also seen strong inflows last year, especially since November. Financial equity funds, which typically benefit from rising interest rates with inflation, have also raised large sums of money.

Commodities are often viewed as a hedge against inflation, but investor confidence in the asset class seems to be weaker this time. Funds backed by physical commodities have mainly seen net outflows in the past few months, including oil-focused funds, gold funds and silver funds, according to the report. Industrial metals funds have bucked the trend recently and have seen some inflows this year, but investor interest is still quite modest.

Futures traders are not particularly bullish on commodities either, as their long positions, which benefit when prices rise, are within historical ranges. “While the price momentum is very positive, the volatility of the commodities is also very high, which has limited the exposure,” wrote Thatte in the Friday report.

Write to editors@barrons.com

Mark Cuban, different traders, put $250,000 in basketball tech firm GRIND

Thomas Fields, founder of GRIND Basketball.

Source: GRIND

The term has become popular in professional basketball, but Thomas Fields really “trusted” the process when he attracted money from investors, including Mark Cuban, to expand his business.

Fields is the founder of GRIND, a sporting goods manufacturer, and convinced the owner of Dallas Mavericks to get into the deal. The 26-year-old Houston native received $ 250,000 from its appearance to “Shark Tank” for his portable shooting machine.

In an interview with CNBC on Wednesday, days after his appearance on Shark Tank on May 7, Fields recalled the process of introducing GRIND into Mach 2020, days before the sport was suspended due to Covid-19.

“It literally took two weeks for the pandemic to hit,” Fields said. “After that, we worked in a Covid world, so we don’t even know what this non-Covid world looks like.”

Throw the sharks

In business terms, GRIND has done well during the pandemic. The basketball machine is set up for a single user and automatically returns the ball to the player, allowing 1,000 hits per hour.

Fields said the company had revenue of around $ 217,000 in the first five months from lockdowns and large gatherings banned. The product currently retails for $ 1,595 website. On Amazon, similar shooting machines are listed for over $ 5,000.

And Fields notes that GRIND folds into a duffel bag in 90 seconds, weighs about 100 pounds, and describes the product as “affordable and accessible to any athlete who wants it”.

When asked about recent sales, Fields declined to disclose numbers, citing privacy concerns for his new partners. “Shark Tank” invited Fields to the show after six rounds of interviews. The last pitch took place in Las Vegas last September.

Mark Cuban on ABC’s “Shark Tank”

Jessica Brooks

His fiancée applied for the show before the company started. Fields said he watched pre-recorded episodes that air on CNBC and made notes. And while he was quarantined in Las Vegas before meeting the sharks, he continued to study the process of his one-off pitch.

“All I could do was practice,” Fields said, adding that he was in “run mode” when he arrived. He re-cast a cast including Cubans Minnesota Timberwolves Owner Alex Rodriguez, CNBC employee Kevin O’Leary and businesswoman Barbara Corcoran. After the pitch he got two investors – Cuban and Corcoran – who took over 25% of the company.

“I love the product,” Cuban told CNBC in an email. “I ordered one while the show was filming.”

Fields added, “It was great going through this and after knowing that these two believed in me as an entrepreneur and loved the product, that was more than enough validation to say the company was going to be special.”

Batteries not included

Shortly after recapping the show, Fields remembered more about GRIND’s process. He pointed to 2017 when he was recovering from four ACL surgeries, one of the more extreme injuries in sports, especially basketball. At this point, Fields knew that making it into the National Basketball Association was not achievable.

Fields said he learned to weld thanks to a friend and started working on the concept of the GRIND machine. He raised early investors, but no one provided money. So he started working at Raising Cane’s, a popular fast food chain and local car wash, and saved nearly $ 25,000.

Fields said he had become a “self-taught mechanical engineer,” paid $ 300 a month, and worked on prototypes and proof of concept in his garage.

“Just perfect the machine and make it great,” recalled Fields.

Even Rodriguez welcomed Fields’ persistence on social media. “I got a lot of love, but in the end he was out,” Fields said of Rodriguez.

Today the shooting machines are made in Idaho and Fields has eight employees, including four engineers. GRIND also has an NBA team deal with the San Antonio Spurs, who use the machine for their youth camps.

“We targeted the Spurs because they have the best and largest youth organization in the NBA,” Fields said. “It was strategic and we didn’t partner with them because they were around.”

GRIND is working on a battery that can be added to the machine. This was one of the problems Cubans faced before investing. The machine uses an extension cord for power supply. Fields noted that Cuban told him the product was not portable because it still needed an electrical outlet.

“Ultimately, we don’t want customers running around with 100-foot extension cords,” Fields said. “We want them to be ready and to worry that they will be better.”

Nike and Peloton ambitions

Fields enters a competitive exercise equipment market. According to the company Grand View Research, the sector is expected to be reached $ 89.2 billion in 2025. And GRIND also competes with the tech industry as companies like Apple to sell Sports and fitness training subscriptions.

“The way I see it, there is only so much software can do to an individual,” Fields said. “There’s so much hardware can do to a consumer too. I’ve always believed it brings the best of both worlds.

“I believe our hardware solves a real problem that no software can ever figure out – you can get your shots made and missed, pass the ball automatically, and allow you to shoot more than a thousand shots an hour. No software can. ” “”

Fields says he wants to build GRIND as a combination of Nike and Peloton.

“It is a perfect time for us to change the world of basketball through interactive sports equipment,” said Fields. “I think the future is bright for us. We’re much more than a shooting machine company.”

And now the process continues.

Traders have misplaced religion in mannequin, dealer says

Move in or check out?

Shares of Airbnb fell by 36% compared to the February high after the holiday rental company’s profit announcement after the closing bell on Thursday. Airbnb’s sales grew 5% in the first quarter, the company said in its second report since going public in December.

With stocks down more than 3% on Thursday to close at $ 135.75, there is limited hope of a rebound, Todd Gordon, founder of TradingAnalysis.com, told CNBC.

“If we hit new lows, it’s never good,” Gordon said in an interview with CNBC on Thursday “Trading nation” After Airbnb dropped below the $ 138 support level, he observed.

With a 20% share of the US accommodation market, Airbnb is “bigger than the top five hotel brands combined,” well positioned to capitalize on the pent-up demand for travel, Gordon said.

“As soon as this real estate market eases again, the pent-up demand subsides, the problems in the supply chain calm down and more space becomes available,” he said.

Airbnb’s gross bookings were down around a third in 2020. In the most recent new releases, Short Term Accommodation Service saw a 39% quarterly increase and a 13% year-over-year increase in nights and experiences booked.

“I think these issues are temporary and I think people will re-emerge in this market,” said Gordon. “I’m bullish. I would like to see tech support, a little bit of evidence of a reversal, before I get in, but I wouldn’t give up on that just yet.”

Another dealer wasn’t so sure.

“The competition is really becoming a problem for Airbnb,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management, in the same interview with “Trading Nation”.

“VRBO is really giving Airbnb a run for its money, mainly because Airbnb has a much larger inventory in the urban core and VRBO is much, much better positioned in the vacation rental[ies]where most people want to go, “he said.

Airbnb’s fees are also starting to discourage consumers and leading them to alternative offerings, Schlossberg said.

“I think what happens to Airbnb, the swan jump in price, is that it has lost the Wall Street imagination,” he said. “Wall Street lost faith in its model at this point and I think it will be very difficult for the company in the future.”

Disclaimer of Liability

Buyers are ignoring a ticking-time-bomb inventory market, says this cash supervisor

Tuesday looks difficult for stocks, especially the tech space, as inflation fluctuations continue to fluctuate across the markets. The sector has borne the brunt of concerns that higher inflation could bring an early end to the Federal Reserve’s pandemic-induced accommodative stance towards COVID-19.

After last week’s downside jobs surprise, some fear Wednesday’s consumer price data could also deliver a nasty shock. Fresh Chinese data from Tuesday is not helpful surging Factory gate prices even though the consumer side was subdued. This is because investors continue to monitor the effects of a failed US energy pipeline.

Inflation is the worst case scenario for this ticking time bomb market full of complacent investors, warns our company Call of the day by Thomas H. Kee Jr., President and CEO of Stock traders daily and portfolio managers Equity logic.

“The ONLY reason an incentive was even possible is because there was no inflation. When inflation returns, any protections given to investors (free money from incentives) will be dissolved and will not be able to return to save the day, ”Kee told MarketWatch on Monday in an interview on LinkedIn. He said recent employment data actually suggests that price hikes “will be more severe than previously thought”.

Investors are ignoring the fact that stocks are very expensive right now, said Kee, who last November forecast a 25% decline for the Dow Jones Industrial Average
DJIA, -1.60%
at the end of the year based on a high price-performance ratio.

Last year, he expected Dow earnings per share to grow 32% in 2021, but now sees it spike to 62% before plunging to 2.42% in 2022.

DAILY DEALER

“The declines can be a lot worse than 25% and if the FOMC [Federal Open Market Committee] is handcuffed because of inflation, and the quick rebound that investors have been used to will not happen either, ”Kee said. “The fair value multiple of the SPX
SPX, -1.12%
is not 30 – [to] 35x. It’s more like 15x. “

The value for money for the Dow’s growth for the next year is “over 7” and its normal fair value is 1.5. On that basis, it’s way overrated, ”said Kee.

DAILY DEALER

What this would bring to the bottom is a return to investors’ perception of natural risk – which is currently severely lacking. “They have received free money from the government, stimulus programs are fully effective, and investors see no risk at all. That is the most dangerous thing! “Said Kee.

He advised investors to keep switching between the SPRD S&P 500 ETF Trust
SPY, -1.14%
and cash. Kee suggested holding this course over the past year until signs of reversals appeared or investors became concerned that the central bank’s stimulus might stop. No signs so far, he said.

“As long as this is true, investors will not perceive risk the same way,” he said. “At a certain point, however, that changes when the big buyer isn’t there. Then natural risk perceptions return and if this happens when the Dow’s PEG ratio is above 7, watch out below !! “

Pumps run dry and Wall Street steals for losses

Stocks are Career lower at the beginning, led by the Nasdaq Composite
COMP, -0.33%,
the 2.6% slipped to start the week. The Stoxx Europe 600 has decreased by 2%, while in Asia the Nikkei
NIK, -3.08%
slipped 3% and Taiwan’s
Y9999, -3.79%
Main index fell almost 4%.

Cyberhacked Colonial Pipeline said fuel services, like the energy market, should be “substantially” restored by the end of the week count on. Right now the drivers are frustrated:

Read: Wall Street has seen gains of up to 79 for these 20 cybersecurity stocks

Wynn Resorts
WYNN, -0.52%
become Outsourcing of its online gaming unit via a merger with a special purpose vehicle.

A record number of small businesses have reported doing so could not fill any vacancies in AprilAccording to a small business lobby group, the National Federation of Independent Business. That mess is heating up with the food group Tyson Foods
TSN, + 0.11%
planning Salary increases to keep up with the demand for US chickens and labor shortages. This follows the Chipotle burrito chain
CMG, + 0.13%,
which announced a possible path to one six-figure salary to attract potential employees.

A shooter opened fire in a school in RussiaSeven students and a teacher are dead and several are wounded.

Random readings

Efforts to limit births in China can be work too well.

Why Amazon
AMZN, + 0.74%
Chief Executive Jeff Bezos had to stand in line for him $ 500 million super yacht.

Need to Know starts early and will be updated until the opening bell, however Login here to get it in your email box once. The version sent by email will be sent around 7:30 a.m. Eastern.

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How a lot cash ought to I spend on Coinbase inventory? Monetary advisers provide steering to younger buyers

It is invested with “play money” and then played with fire.

As a Coinbase, the Cryptocurrency exchange, goes public on Wednesday, financial advisors want you to remember the difference.


As the number of retail investors grows, there is a growing attraction to find and benefit from the next new thing.

Enter Coinbase, a platform with 56 million verified users that enables buying and selling of Crytpocurrencies like Bitcoin
BTCUSD, + 2.21%
and etherthat seem to keep increasing in value.

An obvious investment considering the expert’s assumption that cryptocurrency plays a role “Turning point” Law?

Not necessarily. Do this with caution, say financial advisers.

Experts say it is has always been risky investing in companies the way they go public.

For example, with no track record, stock prices can be speculative Retail investors who believe they understand the brand may not appreciate it as much as institutional investors do.

Mix that with the cryptocurrency now volatilityand consider the skepticism of some who say Coinbase’s valuation is “Ridiculously high.” That number ranges from $ 50 billion to $ 150 billion, and even bullish experts say the stock is “not for the faint of heart.”

(A Coinbase spokeswoman declined to comment ahead of the IPO.)

The idea is to invest in an IPO with a small portion of the money that you may lose. The question is how much? Here are a few different answers.

The numbers game

A common refrain is to use between 5% and 10% of investable wealth for speculative investments or stocks. Others say the amount you are okay with shouldn’t be more than 1% of an investor portfolio, if that’s not an overly plain word.

Ron Guay of Rivermark Wealth Management in Sunnyvale, Calif., Urges clients to limit their “play money” to 10% – and that’s the same rule he follows himself.


“The less your net worth, the smaller the percentage of the game money you should lose.”

– Theresa Morrison, founding partner at Beckett Collective in Tucson, Arizona.

Daniel Johnson from RE | Focus Financial Planning of Winston Salem, NC says it’s all for people who put money into the companies they care about because the investment often affects companies they know and understand.

But he’s also everything for diversification. Keeping your investment in a company below 5% is a good bet, he said.

However, according to Theresa Morrison, founding partner of the Beckett Collective in Tucson, Arizona, not all of them fit the same numbers.

“If you don’t want to lose your ‘play money’ then don’t play,” she said. The money could be 1% to 2% of the assets invested, she said.

“The less your net worth, the smaller the percentage of the game money you should lose,” she said. “Conversely, the more flushes you have, the more percent of the game money you can allocate, but only up to a point.”

The no-numbers approach

Ahead of Coinbase’s direct listing, Chris Struckhoff, founder of Lionheart Capital Management in Orange County, Calif., Said he had spoken to a few customers looking to buy Coinbase stock.

“You have those dollar signs in your eyes,” he said.

These people view Coinbase stocks as rocket fuel to help them meet their financial goals, but “as with anything, the faster you try to go, the more likely you’ll trip yourself,” he said.

Struckhoff does not ask its customers to buy the stock or to wait. He’s contemplating the idea of ​​playing money without using fixed numbers. He does this by thinking backwards with customers.

You start out by remembering a person’s financial goals – a house, a boat, a nest egg, or something else. Then they look at the financial leeway that someone has to devote to something like a Coinbase piece.

What about buying cryptocurrency?

Given the surge in cryptocurrencies like Bitcoin and Ethereum
ETHUSD, + 3.61%,
Some say it’s worth going straight to the source and buying virtual currency instead. But again they say not to go overboard.


“You can either look for gold (your own crypto) or sell shovels (your own Coinbase share).”

– Graciano Rubio, of Infinity Financial Planning in Los Banos, California.

For example, Vrishin Subramaniam, the founder of CapitalWe, a financial planning firm focused on millennial and younger investors, recommends investing between 2% and 5% of net assets in cryptocurrency.

If anyone is looking to buy into Coinbase, Subramaniam recommends putting that investment in the 5% cryptocurrency investment basket. Going forward, “we can increase this allocation for listed securities after a few quarters once we have more information in the public domain,” he said.

“Since Coinbase and other platforms have made it convenient to own cryptocurrency, I think the best way to get the word out about cryptocurrency is through direct cryptocurrency ownership,” said Graciano Rubio of Infinity Financial Planning in Los Banos, California.

There is a metaphor for the moment that includes the mid-19th century California gold rush. “You can either look for gold (your own crypto) or sell shovels (your own Coinbase share). They each have unique risks and benefits, but both can be a successful strategy for capitalizing on cryptocurrency, ”he said.

Traders have put extra money into shares within the final 5 months than the earlier 12 years mixed

Trader on the New York Stock Exchange.

Source: NYSE

The recent wave of market excitement has brought about an astonishing cash frenzy, with more money from investors flowing into stock-based funds in the past five months than in the past 12 years combined.

These Bank of America statistic reflects a period when the Dow Jones Industrial Average rose more than 26%.

At the same time, the market has been going through some wild trends which included a massive trend Inflow to meme stocks as GameStop and AMC Entertainment Holdings. The trading volume increased 40% in the first quarter compared to the last three months. Investors grabbed sectors that performed poorly over the past year and hoped for a significant economic recovery from the 2020 Covid-induced decline.

Amid the frenzy, roughly $ 569 billion has flowed into global equity funds since November, compared to $ 452 billion in the past 12 years, which marked the beginning of the longest bull run in history, according to Michael Hartnett, chief investment strategist at the Bank of America.

Those numbers could add slightly to ongoing concerns about financial bubbles, as valuations are roughly on par with just before the dot-com bubble burst in 2000. These are not common times, however.

“The markets have a logic right now,” said Art Hogan, chief market strategist at National Holdings. “It’s less about irrational exuberance in the overall market, less about 1999-2000 levels, and more about the driver. The driver is clearly an explosion in economic activity that is likely to result in some earnings growth.”

The winning season for the first quarter is shifting into gear next week and the mood is high.

The year-over-year profit is expected to increase by 23.8%. According to FactSet, this would be the best growth rate since the third quarter of 2018.

More notably, however, the analysts keep increasing expectations as earnings approaches, which is the opposite of what normally happens. Wall Street generally cuts its outlook the closer it gets to the report date.

During the quarter, earnings estimates for the entire S&P 500 rose 6% to $ 39.86. This is the largest percentage increase in a quarter since FactSet began collecting the metric in the second quarter of 2002.

At the same time, The expectations are high for economic growth.

GDP is expected to grow 6.2% in the first quarter, according to the Atlanta Fed. For the year, central bank officials expect growth of 6.5%, the fastest annualized profit since 1984.

The S&P 500 is trading at 20.4 times the forward earnings, which is actually below 22.8 times as of the end of 2020, but is still at the level of the dot-com bubble. Still, more than half of global stocks are still trading below their record highs, according to BofA.

Hogan said that investors worried about a bubble should watch and review the earnings season not just for results but also for guidelines Inflation figures come out to see how hot the economy is going.

“The best time to wrap your head around it is probably ahead of you. So focus on the next few weeks,” he said. “Look at the guidelines, that will be the tell. That tends to act as a regulator for the market.”

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Traders are pouring massive cash into the infrastructure behind NFTs

The “non-fungible token” hype that is raging across the country has fueled appetite for the backbone of the phenomenon.

Driving messages: Investors invest a lot of money in the infrastructure of the phenomenon – they bet it will stay here.

Catching up quickly: The staggering amounts of money spent to own a digital version of art – or newspaper covers, trading cards, memes, as you call them – verified through blockchain have been cited as a side effect of the wider market hype.

What you say: The infrastructure behind NFTs “has improved tremendously in recent years. … protocols, applications, and developers can quickly scale to meet demand,” said Matt Beck, director of investments at venture capital firm Digital Currency Group.

  • “”Interest in NFTs is likely to remain even if prices cool in the face of a major financial downturn. “

The company behind the virtual trading card website NBA Top Shot said it Tuesday Raised $ 305 million – the largest financing round to date for an NFT-focused company. (Valuation: $ 2.6 billion).

  • NFT marketplace SuperRare said today it raised $ 9 million.
  • OpenSea, another platform for selling and buying NFTs, said last week it raised $ 23 million.

By the numbers: NFT-related startups raised $ 35 million in the past year, according to Pitchbook.

  • The funding rounds listed above (by no means exhaustive) are already more than nine times as high – and it’s only March.

The bottom line: As long as NFTs are hot, so will its ecosystem.