Investing.com -- Barclays analysts have cautioned that signs of a market bubble are appearing in the wake of the U.S. presidential election, driven by retail investor exuberance and increased speculative activity.The firm highlighted that"euphoria in the crypto market has spilled over to other sectors of the equity markets that are generally perceived to be darlings of the retail investors community.
Barclays also flagged a surge in options trading."Option volume on US stocks recently increased by 50% to $459 billion in the first week post-elections," noted the analysts.Additionally, the bank pointed to inverted skew in options pricing on"unprofitable" stocks as a potential sign of froth. Inverted skew signals strong demand for upside exposure—a hallmark of speculative bullishness, according to Barclays.
The analysts underscored the risk of this speculative fervor spilling over to broader markets, particularly against the backdrop of geopolitical risks, such as escalating tensions in the Russia-Ukraine conflict.While market exuberance often accompanies election cycles, Barclays urged caution, warning that the rapid rise in speculative activity in retail-dominated segments could lead to increased volatility in the coming months.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.would like to remind you that the data contained in this website is not necessarily real-time nor accurate.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »
Source: FoxBusiness - 🏆 458. / 53 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: trtworld - 🏆 101. / 63 Read more »