Column: Who's loaded up on stocks? Fewer than you may think - Mike Dolan

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Stock markets hitting record highs again must mean investors are up to their eyeballs in equity, right? Well, not yet it seems - or at least not everyone.

FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri

Longer term, the driver has been a likelihood that central banks will keep borrowing near zero for years to ensure government debt piles that funded massive support programmes remain affordable. That prospect lifts inflation expectations, assets that hedge inflation such as equities, boosts stock valuations versus bonds and cuts discount rates on future earnings.

That’s lower than the average of the years since the banking crash 12 years ago and far below the early 2018 high of 47.6% - a level JPMorgan expects will be hit again. And, all things equal, allocations moving back up there would be commensurate with another 32% rise in world stock prices from here, they say.

And even though an estimated $500 billion of new short positions taken out on individual stocks at the end of February

 

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I suspect Stocks with Falsely inflated values . Wall Street is hiding the recessionary decline in the economy by manipulating stocks at unrealistic premiums . The sharemarkets and stock values will plummet post November. The real decayed state of the economy will revealed

Please don't build a wall in the street otherwise we won't be able to use that street

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