A month ago a Financial Times reader pithily described their investment strategy for 2021 as “just buying what my kids want to buy and holding eyes firmly shut on valuation”. For much of the year it would have worked like a dream. Until now.
The primary cause for the recent bout of market turbulence was the emergence of a new, highly contagious coronavirus strain and the Federal Reserve’s simultaneous pivot to a more hawkish stance to contain the threat of inflation. That has forced investors to start pencilling in earlier interest rate rises in 2022.
Superficially, markets have handled it coolly. Most mainstream stock market indices remain near their peaks. But look closer and the pain becomes more apparent. Across the board, many of the year’s most outrageously successful trades — and in the eyes of some market veterans, most heinously silly — have come undone.
Cathie Wood’s Ark Invest was emblematic of the rally, and encapsulates the recent setback. Her flagship fund gained almost 150 per cent last year as investors embraced its theme of “disruptive innovation” in areas such as artificial intelligence and genomics. Despite a strong midweek bounce, it has now tumbled more than 21 per cent this year, pushing it into a bear market.
However, Ark is merely the tip of a vast iceberg of speculation that has grown to monstrous proportions over the past year. It is now starting to melt a little.
A Goldman Sachs index of unprofitable US tech stocks has lost more than a fifth of its value over the past month. Bitcoin is 28 per cent off its peak. So-called meme stonks such as cinema chain AMC and GameStop — beloved by the self-confessed “apes” and “degenerates” on Reddit — have been taken to the woodshed. ‘Special purpose acquisition vehicles have lost their boomtime bloom.

Is this just a blip, or is sanity making a tentative return? And if it is the latter, could it presage the beginning of a broader stock market downturn?
Many veterans hope this is just the end of the silly phase. The severity of the declines in the riskiest trades indicates that “peak insanity” is behind us, according to Doug Ramsey, chief investment officer at The Leuthold Group.
“We think 2021 has earned its place in the books as the wildest and most speculative year in US stock market history, eclipsing even 1929 and 1999. That doesn’t mean 2022 will bring a panic or a crash, maybe just a degree of sobriety,” he argued.
This would be a dream scenario for the US central bank. Although inflation has accelerated, policymakers for the most part remain confident that the data will moderate next year. But the euphoria in some corners of the financial system will have worried them.
If the signalled acceleration of the “tapering” of the Fed’s bond purchases — and the implied earlier interest rate increases in 2022 — helps blow some of the froth out of markets without plunging them into turmoil, it would be the perfect outcome for the central bank. Many investors would also welcome it, on the basis that a sober rally is a more durable rally.
However, the mania of the past year may be harder to dispel than many think. For more than a decade, the dominant theme has been “buy the dip”. Again and again, it has proved to be a successful trading strategy, helping the mentality worm its way into the subconscious of everyone from ordinary day traders to titanic hedge fund managers.
Indeed, Bank of America notes that all three of its major client segments — hedge funds, big investment funds and wealthy individuals — have all bought the dip this past week. Reddit’s infamous r/WallStreetBets forum is teeming with defiant memes from uncowed traders.
That is understandable. After all, Goldman’s unprofitable tech stock index has still returned 164 per cent over the past two years, even after the recent tumble. And for all the understandable concern about central banks becoming less charitable in 2022, it remains doubtful that they will be willing or even able to raise interest rates significantly.
Government bond yields are therefore likely to remain negative in real, inflation-adjusted terms for years to come. Trillions of dollars are still sloshing around the financial system, desperately sniffing about for even the faintest whiff of potentially abundant returns. That is a wonderful environment for long-shot bets like those espoused by Ark Invest, even if many, by their nature, will not pan out.
Yet dangers lurk. As long as inflation stays uncomfortably hot, central banks may be more reluctant to ease monetary policy if markets suffer a broader, steeper fall — which has been the primary reinforcement mechanism for the buy the dip mentality.
For example, in late 2018 it was relatively easy for the Fed to back away from plans to tighten monetary policy and reverse a violent financial market sell-off because inflation remained quiescent. Doing so is much harder when prices are rising at the current rate.
The sell-off in silliness could therefore still prove to have been the first quiver of a coming earthquake. Even the dotcom bust was not recognised as such until well after it was a reality.
robin.wigglesworth@ft.com
Follow on Twitter: @robinwigg
Unhedged — Markets, finance and strong opinion
Robert Armstrong dissects the most important market trends and discusses how Wall Street’s best minds respond to them. Sign up here to get the newsletter sent straight to your inbox every weekday
Hi to all, the contents existing at this web page are actually amazing for
people knowledge, well, keep up the good work fellows.
levofloxacin 500mg generic order levaquin 250mg generic
avodart online order ondansetron 4mg oral zofran tablet
oral aldactone 25mg purchase propecia sale order diflucan 100mg pills
oral ampicillin 500mg purchase cephalexin sale buy erythromycin 250mg generic
fildena cost order careprost without prescription methocarbamol medication
buy suhagra pill estradiol canada buy estrace without prescription
lamotrigine online order cheap retin gel retin cream uk
buy tadalis 10mg online brand tadalafil diclofenac price
buy isotretinoin sale order amoxicillin zithromax online buy
order indomethacin terbinafine 250mg price trimox oral
buy cialis tablets ed pills that work buy sildenafil 100mg without prescription
purchase anastrozole online brand clarithromycin 250mg sildenafil 50mg price
order deltasone 10mg cialis medication sildenafil 50mg cost
cialis kaufen generika original tadalafil 5mg rezeptfrei sicher kaufen sildenafil 50mg kaufen für männer
accutane brand order amoxil 1000mg online cheap ivermectin 12mg for sale
provigil generic Sales cialis diamox 250mg tablet
order doxycycline 200mg without prescription buy generic furosemide 40mg order lasix
generic altace 5mg avapro oral purchase azelastine online
order catapres 0.1mg generic order meclizine 25mg online order spiriva 9mcg for sale
buspirone canada buspirone 10mg over the counter oxybutynin 5mg over the counter
hytrin ca buy arava pills azulfidine 500mg oral
buy fosamax 70mg for sale pepcid 20mg cost buy famotidine 40mg online cheap
order olmesartan 20mg sale purchase depakote diamox 250 mg oral
brand prograf 1mg buy prograf 5mg generic urso 150mg cost
bupropion ca cheap bupropion quetiapine online buy
molnunat order order molnunat 200mg without prescription cheap lansoprazole 30mg
sertraline us buy sertraline 100mg online sildenafil drug
imuran 100 mcg ca buy pantoprazole sale sildenafil tablets
buy cialis 20mg pills order fluoxetine 20mg sildenafil overnight delivery
tadalafil 5mg tablet brand amantadine 100mg order symmetrel 100mg
revia for sale online order femara 2.5 mg pills buy aripiprazole 20mg for sale
order avlosulfon 100 mg generic allegra 180mg pills order perindopril 8mg generic
provera generic brand biltricide 600mg order periactin 4 mg for sale
order provigil online cheap order stromectol 12mg online ivermectin brand
purchase fluvoxamine pills buy glucotrol online cheap buy glucotrol 5mg pills
isotretinoin online buy amoxicillin pills buy deltasone pills
piracetam 800mg drug viagra for sale online viagra 100mg
order generic azithromycin 500mg buy zithromax sale order neurontin 100mg
female cialis pill tadalafil 10mg usa buy sildenafil 100mg generic
cost furosemide 40mg plaquenil over the counter buy hydroxychloroquine 200mg pill
buy cialis online cheap order tadalafil 5mg online clomipramine pill
aralen for sale oral chloroquine oral baricitinib 2mg
order sporanox pills tinidazole 500mg cost tindamax 300mg usa
glucophage pills atorvastatin 10mg ca purchase tadalafil pills
zyprexa order online bystolic for sale online order generic diovan 160mg
buy norvasc 10mg generic norvasc buy online buy cialis 10mg for sale
clozapine generic decadron medication oral decadron 0,5 mg
buy linezolid online real casino slots free blackjack games
prilosec 10mg usa purchase prilosec generic best online gambling sites
lopressor 50mg generic atenolol 50mg cost order vardenafil
buy a dissertation cash poker online bonus poker online
buy levitra 10mg generic medrol 8 mg oral medrol 4mg pills
buy generic clomiphene casino slots online casino slots no download
aristocort 10mg canada buy triamcinolone 4mg online cheap purchase desloratadine for sale
order priligy 60mg online order cytotec 200mcg online cheap order synthroid 75mcg online
order orlistat 120mg online cheap order orlistat 60mg generic acyclovir us
is cialis generic buy inderal 10mg pill order clopidogrel online cheap
zyloprim 100mg for sale buy generic rosuvastatin 10mg cheap zetia 10mg
cheap methotrexate 10mg order warfarin generic order metoclopramide 20mg generic
domperidone 10mg ca domperidone order cyclobenzaprine pill
brand losartan esomeprazole oral topamax 200mg tablet
baclofen 10mg uk ozobax cheap order toradol
purchase imitrex pills buy imitrex 25mg generic dutasteride for sale
gloperba tablet slots games free casino bonus
buy generic zantac order celebrex 100mg pills order celebrex 200mg online
online casino bonus play blackjack casino games online free slots
flomax 0.4mg uk buy tamsulosin 0.2mg for sale buy aldactone for sale
cialis 5mg generic cheap ciprofloxacin 1000mg cipro 500mg over the counter
order simvastatin 10mg pills order valtrex 1000mg pill proscar for sale online
buy flagyl 200mg online cheap buy metronidazole 400mg generic bactrim 960mg uk
fluconazole ca order diflucan without prescription sildenafil pills
cialis pills 5mg viagra sildenafil viagra 200 mg
pfizer viagra sildenafil 50mg generic buy tadalafil 10mg sale
cefuroxime 500mg usa purchase cefuroxime for sale methocarbamol 500mg pills
free online roulette tadalafil us purchase cialis
trazodone 100mg price buy desyrel 50mg online sildenafil pills
my best friend essay writing write my assignment for me ivermectin purchase
viagra sildenafil 25mg sildenafil overnight shipping order lamictal 50mg generic
order deltasone 40mg online amoxicillin order online amoxil 250mg uk
sildenafil women buy generic cialis order cialis 40mg online
caesars casino online play online casino real money tadalafil dosage
order azithromycin 500mg online azithromycin us neurontin online
jackpot party casino live blackjack provigil pill
oral lasix 100mg furosemide canada plaquenil 200mg pills
sildenafil over the counter purchase fildena online cheap cost rhinocort
prednisone 40mg without prescription buy mebendazole 100mg generic order mebendazole 100mg sale
retin cream generic order tadalafil 10mg pills buy avana generic
purchase tadalafil generic buy generic indomethacin 75mg indocin price
generic terbinafine buy trimox 500mg online purchase trimox pill
order clarithromycin 500mg online cheap order generic clarithromycin 500mg order generic meclizine
buy naprosyn 500mg purchase omnicef sale lansoprazole us
spiriva 9mcg uk tiotropium bromide 9 mcg generic hytrin cheap
buy proventil 100mcg pill purchase pantoprazole pills ciprofloxacin 500mg pill
buy pioglitazone 30mg online sildenafil next day delivery usa order generic sildenafil
order singulair 5mg pill purchase montelukast sale sildenafil otc
cialis 40mg pills Discount cialis play casino
buy tadalafil 40mg pill cialis 20mg pill purchase cialis for sale
world poker online casino world play poker online free no sign up
ivermectin ireland buy avlosulfon 100mg online cheap order avlosulfon for sale
roulette online with real money roulette online for real money hollywood casino online real money
adalat 10mg without prescription adalat price purchase allegra online cheap
online casino real money us pharmacy online shopping usa money can t buy everything essay
ramipril 5mg uk purchase glimepiride sale order arcoxia 120mg sale
출장마사지
online assignment writer cheap dissertation help order azulfidine generic
doxycycline generic doxycycline 200mg cheap cleocin 300mg canada
cialis 5 mg precio cialis 5 mg 28 comprimidos en farmacias cialis
cialis 5 mg precio tadalafil 5 mg cialis 5 mg
order asacol pills azelastine 10ml ca avapro 300mg pills
buy acetazolamide 250 mg generic buy diamox online cheap generic imuran 50mg
buy temovate generic brand buspirone buy amiodarone pill
Read information now. Get information now.
https://viagrapillsild.online/# sildenafil prescription canada
Cautions. п»їMedicament prescribing information.
cost lanoxin 250mg telmisartan 80mg pills generic molnupiravir 200 mg
Long-Term Effects. Actual trends of drug.
best price for tadalafil 20 mg
drug information and news for professionals and consumers. earch our drug database.
buy dapoxetine 30mg sale buy domperidone 10mg domperidone 10mg tablet
order alendronate 35mg online cheap fosamax 35mg order ibuprofen generic
Everything about medicine. Drugs information sheet.
https://tadalafil1st.com/# cialis replacement
Cautions. What side effects can this medication cause?
indomethacin 50mg oral indomethacin 50mg capsule cenforce 50mg cheap
buy nortriptyline generic buy panadol 500 mg pill buy generic paroxetine 20mg
Cautions. Some trends of drugs.
https://tadalafil1st.online/# tadalafil 5 mg tablet coupon
Medscape Drugs & Diseases. Some trends of drugs.
order doxycycline for sale aralen 250mg oral medrol pill
generic pepcid pepcid without prescription mirtazapine pills
purchase requip pill ropinirole drug order labetalol 100mg for sale
purchase tadalafil clopidogrel 150mg uk buy trimox 500mg
cost esomeprazole 40mg buy clarithromycin 500mg online order lasix 100mg pill
buy tadalafil 40mg generic Best price for generic cialis purchase viagra sale
minocin 100mg canada order neurontin 800mg pill brand terazosin 5mg
order tadalafil 10mg online buy ed pills online medication for ed
order glycomet 500mg generic glucophage 500mg uk buy nolvadex 20mg generic
order modafinil 100mg stromectol tablets for humans phenergan order
clomiphene 50mg over the counter lipitor 40mg sale order prednisolone 40mg online
prednisone 5mg oral prednisone brand amoxil 250mg brand
buy isotretinoin 40mg online cheap order deltasone 20mg brand ampicillin 500mg
over the counter erectile dysfunction pills purchase lyrica without prescription order proscar 1mg online
ivermectin 3 deltasone 10mg cost deltasone 10mg usa
zofran oral bactrim 480mg uk buy generic bactrim 960mg
order isotretinoin pills generic amoxil 1000mg buy azithromycin 500mg pill
provigil 200mg generic metoprolol 100mg oral order metoprolol sale
купить птс
баланс карты купить
купить данные банковских карт
купить визу сша
buy vibra-tabs generic buy vardenafil sale buy zovirax 400mg without prescription
avodart 0.5mg uk buy keflex 125mg purchase orlistat without prescription
imuran over the counter naprosyn online order buy naprosyn 250mg
order oxybutynin 2.5mg sale purchase oxybutynin generic brand oxcarbazepine
NormanElupt
https://vammebel.ru/
buy cefdinir without prescription prevacid usa purchase pantoprazole generic
buy generic zocor 10mg buy promethazine 25mg for sale sildenafil 150mg for sale
buy dapsone 100mg for sale avlosulfon for sale order tenormin 100mg without prescription
alfuzosin cost trazodone 100mg pills buy diltiazem
займы на карту без отказа мгновенно
займ на карту
займу на карту с кредитной историей