The New York Stock Exchange. Photograph: Michael Nagle/Bloomberg

Day traders are not reflective of overall sentiment

The Fearless Girl statue in front of the New York Stock Exchange at Wall Street. Photograph: Angela Weiss/AFP via Getty Images

Almost half surveyed in latest AAII poll were bearish

Facebook, Amazon, Netflix, Microsoft, Apple, and Google (FANMAGS) – in aggregate, the stocks trade on 7.7 times revenues and 55 times earnings, according to Verdad Capital. Photograph: Stan Honda/AFP/Getty Images

Report warns about paying exorbitant revenues for exciting growth stocks

US president Donald Trump at a news conference at the White House in which he announced that Eastman Kodak would receive a loan to manufacture ingredients used in pharmaceuticals. Photograph: Alex Wong/Getty Images

Rally driven by news of government loan to help produce coronavirus treatment

Insider selling is a fallible indicator. Photograph:  Cyril Marcilhacy/Bloomberg

Executives are selling five times as much stock as they are buying

Apple: huge stock price gains recorded this year. Photograph:  Josh Edelson / AFP via Getty Images

First year when stocks gain after being down at least 30 per cent at some point

Traders on the floor of the  New York Stock Exchange: Today’s market is even more concentrated than the late 1990s technology bubble. Photograph:  AP Photo/Richard Drew

Investors will be hoping market breadth improves

A trader makes a phone call outside the New York Stock Exchange. Photograph: Johannes EISELE/AFP via Getty Images

Expensive markets can become more expensive in the short-term

Shorts have to get the timing right to guard against potentially unlimited losses. Photograph: iStock

Stocktake: Shorts had to pay high interest fees in order to bet against Wirecard

Climate activists protest outside a Barclays bank branch in Piccadilly in London, on Wednesday. Photograph: Simon Dawson/Bloomberg

UK stocks outperformed cash in 69% of two-year periods, historical survey shows

The Fearless Girl statue stands in front of the New York Stock Exchange on Wall Street. Photograph: Angela Weiss/AFP via Getty Images

Investors ‘positioned for bad news’ on coronavirus and ecomony, survey shows

Elon Musk overtook Warren Buffett last week to become the seventh-richest man in the world. Photograph: iStock

Does it make sense that Tesla’s valuation almost doubled in two weeks?

A share trader reacts on first share prices during early trading at the German stock exchange in Frankfurt in 2008. Photograph: Kai Pfaffenbach/Reuters

If history is a guide then volatility should abate and stocks should gain over rest of year

Outside the New York Stock Exchange. Photograph: Angela Weiss/AFP via Getty Images

Technical indicator has a strong record of intermediate-term returns tending to be better than normal

An investor looks at screens showing stock market movements at a securities company in Nanjing in China’s eastern Jiangsu province. Photograph:  STR/AFP via Getty Images

Morgan Stanley reckons Chinese stocks can go much higher

The CEOs of Amazon, Apple, Facebook and Google will testify in front of Congress at the end of July in what could turn into a serious antitrust investigation. Photograph: Damien Meyer/AFP/Getty Images

CEOs from Amazon, Apple, Facebook and Google will testify in front of the US Congress at the end of July

Photograph: iStock.

Having a ‘mere peek at track records’ isn’t going to help you beat the markets

The S&P 500 has enjoyed quarterly gains of at least 15% on only eight occasions since the second World War. File photograph: Getty

‘It is important to be aware that extreme strength usually begets more strength’

Fewer than 1 per cent panicked and sold all of their stocks. Photograph: iStock

Of those who did trade, the vast majority opted to buy rather than sell stocks

Photograph: iStock.

Only 26 per cent of super-forecasters expect a vaccine before April 2021

“If you were quick, you could have made a bundle by betting on bankrupt stocks such as Hertz, JC Penney and Chesapeake Energy.”

Traders could have made a large return recently by betting on bankrupt stocks

Veteran money manager and bubble expert Jeremy Grantham described the current market a ‘real McCoy’ bubble

Day traders are doing ‘crazy stuff’ but most retail investors are cautious

Nasdaq  was 16 per cent above its 200-day average last week after eight consecutive daily gains. Photograph: Sharron Stapleton/Reuters

Market capitalisation of mega-cap tech stocks as much as bottom 359 stocks in S&P 500

 A road sign near the wirecard headquarters  near Munich in Germany. Photograph: EPA/PHILIPP GUELLAND

‘If ignoring the evidence and prosecuting whistle-blowers is a good job, what is a bad job?’

Some recent action has been even crazier than that seen in the late 1990s. Photograph: iStock

Novice retail traders ‘doing stupid things’, says hedge fund manager Leon Cooperman

‘Fortunes rise from the bottom’ is a tautology, not news’. Photograph: iStock

Strong case for reducing inequality, but cherry-picking numbers is disingenuous

The New York Stock Exchange in Manhattan. Photograph: Amr Alfiky/The New York Times

Most markets trading at forward price/ earnings ratios ‘not seen since late 1990s’

Wall Street is past ‘peak pessimism’. Photograph: iStock

Majority say this is a bear market rally, not a new bull market

Prior to last Thursday’s selloff, the S&P 500 was flat for the year. Photograph: Johannes Eisele/AFP via Getty Images

Sell-off a reminder the rollercoaster ride is not over yet

A pedestrian walks in front of an electronic quotation board displaying stock prices of the Tokyo Stock Exchange in Tokyo. Photograph: Kazuhiro Nogi/AFP

Three-quarters of stock markets around the world have gained at least 20%

Democratic presidential candidate JoeBiden has proposed partially reversing US president Donald Trump’s tax cuts. Photograph: Jim Watson/AFP via Getty Images

Biden’s tax hikes could cut S&P 500 earnings by 12%, Goldman Sachs says

Dr  Anthony Fauci: figures in more than 20 US states confirmed he  was right when cautioning the pandemic is “not close to over yet”. Photograph: (Erin Schaff/The New York Times

Investors finally getting the message that pandemic has some way to go yet

Are ethical investing considerations a luxury in the current environment?

Top 1000: With the world in turmoil, is an ethical investing mindset a luxury you can’t afford? Or is it just the right approach i(...)

Traders wearing masks arrive before the opening bell at the New York Stock Exchange on May 26th. Photograph: Johannes Eisele/AFP via Getty

Investor expectations are ‘achievable but optimistic’ – GMO founder, veteran investor

Traders work on the floor of the New York Stock Exchange. Photograph: Timothy A Clary/AFP

Big tech stocks lead way as S&P enjoys biggest 50-day gain ever despite pandemic

Medical workers check traders wearing masks as they arrive before the opening bell at the New York Stock Exchange in Wall Street last month. Photograph:  Johannes Eisele/AFP via Getty Images

Some 97 per cent of S&P 500 stocks were trading above their 50-day moving average last week

The S&P 500 is trading at 21.5 times expected earnings for the next year, according to FactSet, the highest level in 18 years.

US market valuation contrasts starkly with economy, veteran investor warns

Police advance on protesters outside the White House in Washington, June 1st 2020. Photograph: Erin Schaff/The New York Times

S&P 500 registers its biggest 50-day rally in history as 2020 resembles 1968

The New York Stock Exchange  on Wall Street. Photograph:  Johannes Eisele/AFP via Getty Images

History shows that while volatility can rise rapidly, it often declines slowly

Americans have been using government stimulus cheques to buy stocks.  Photograph; Getty Images

The Financial Times reported Japan’s five main online brokerages recorded over 500,000 new account in March and April

The S&P 500 is now down less than 6%  in 2020, and has clawed back most of its losses. Photograph: Getty Images

Incredibly the tech-heavy Nasdaq 100 is actually up 8% this year

Warren Buffett: Berkshire has now underperformed the S&P 500 over the last one-, five- and 10-year periods. Photograph: Getty Images

Buffett’s defenders might say he has been wrongly written off in the past after prior periods of underperformance

Dublin airport. Germany is set to allow European travel by mid-June, while Spain, Italy, Greece and Cyprus are all hoping international travel will salvage their tourist season. Photograph: Getty Images

Irish approach in tightening visitor restrictions is increasingly out of step with our European neighbours

Two-thirds of fund managers underperformed their European benchmark. Photograph: iStock

Managers unable to take advantage of market opportunities in volatile period

The masked bronze sculpture of the Fearless Girl by Kristen Visbal, in front of the NYSE on May 15th. Photograph:  Johannes Eisele/AFP via Getty

Data from Strategas indicates advances augur well for future returns

Amazon, one of the As in the FANGMAN group. Photograph:  Emmanuel Dunand/AFP via Getty

Market capitalisation of FANGMAN stocks equal to GDP of Germany and Italy

Bank of America’s Bull & Bear Indicator is at 0, denoting extreme levels of bearishness. File photo. Photograph: Jeremy Bales/Bloomberg

Latest Bank of America Bull & Bear Indicator is striking in its pessimism

‘Neither bulls nor bears should be too confident as to what’s next,’ says Howard Marks

‘If you’ve never experienced something before you can’t say you know how it will turn out’

Photograph: iStock

Ordinary investors far more pessimistic about future than institutional investors

Big-name investors are often quick to change their mind. Photograph:  Johannes Eisele / AFP

While David Tepper and Stanley Druckenmiller are cautious, the US president is still the stock market’s biggest cheerleader

Many high-profile investors, including Warren Buffett, have recently expressed caution regarding the prospects for stocks. Photograph: EPA/Larry W Smith

David Tepper and Stanley Druckenmiller say indices look particularly precarious

If history is a guide, things could remain shaky for some time to come. Photograph: Getty

Dramatic spike in financing concerns in September 2008 didn’t normalise for a year

Warren Buffett usually gets busy buying during bear markets. Instead of being greedy while others are fearful in the current crisis, the legendary investor has been busy offloading his large stakes in airline stocks. Photograph: Johannes Eisele/AFP

Buffett’s inaction suggests this is not a time to be bold – it’s a time to be cautious

Tech stocks good, value stocks bad. That’s the market outlook right now. Photograph: iStock

Investing in small group of top performers has risks for all investors

Markets also appear remarkably calm about the likelihood of political volatility in an election year and an impulsive US president.

Hard economic data suggest a deep recession but markets remain buoyant ... and in denial

A trader makes a bubble with  chewing gum  on the floor of the New York Stock Exchange in January, 2019. File photograph:  by Johannes Eisele/AFP/Getty Images

March was worst month for S&P 500 since 2008 but April was best in decades

Many people are turning to stock market trading. This won’t end well.  Photograph: James Gourley/EPA

Research confirms majority of novice investors will lose money

William Ackman, founder and chief executive officer of Pershing Square, made trades that reaped $2.6bn of profits during March’s coronavirus sell-off. File photograph: Scott Eells/Bloomberg

Controversial short-sellers deliver messages that people would rather not hear

The five largest stocks – Microsoft, Apple, Amazon, Google and Facebook – account for only 7 per cent of S&P 500 profits. Photograph: Reuters

Mega-cap stocks like Apple have proved remarkably resilient since outbreak

Vials of of Covid-19 treatment drug remdesivir at a Gilead Sciences facility in La Verne, California. Photograph: Reuters

Stocks soar on promising news remdesivir an effective treatment for virus

  Ryanair CEO Michael O’Leary has a point. Photograph:  Getty Images

Keeping middle seats empty may be medically ineffective, but it makes for good PR

The sun sets behind smoke rising from the LyondellBasell refining plant in Houston, Texas, on April 20th, the day US crude oil prices ended in negative territory for the first time. Photograph: Mark FelixAFP

No one foresaw oil prices dropping into negative territory for first time in history

A member of security wearing a protective mask stands in front of an electronic board displaying stock prices at the lobby of the Indonesia Stock Exchange  in Jakarta, Indonesia. Photograph: Dimas Ardian/Bloomberg

Health threat posed by coronavirus means cheap stocks could still fall in value

The bounce in indices outside the US has been weaker, and investors are entitled to wonder if American optimism is overdone. Photograph: Michael Nagle/Bloomberg

Positivity about market bounce may be overplayed in uncertain Covid-19 world

The five largest stocks in the S&P 500 – Microsoft, Apple, Amazon, Google and Facebook – account for 21.4 per cent of the index. Photographer: Gabby Jones/Bloomberg

Microsoft’s valuation is now almost as big as that of the FTSE 100, as is Apple’s

Photograph: iStock

Ninety-three per cent expect a global recession this year

Photograph: iStock

Investors often see dividends as additional income but that’s not how it works

Democratic presidential candidate Joe Biden recently  called on ‘every CEO in America to publicly commit now to not buying back their company’s stock over the course of the next year’. Photograph: JoeBiden.com via Getty

Controversial practice likely to be out of favour for several years, causing higher volatility

Democratic strategist Justin Horwitz’s comment – “Everything that is wrong with America, in one image” – went viral, but the howls of outrage were misplaced.

Stocks often rise when headlines are negative and fall when headlines are positive

 Stocks have never closed the year higher after being down by more than 30%. Photograph: Getty Images

Investors may need to be patient and assume that further twists and turns lie ahead

Stocks enjoy multiple large rallies in bear markets. Photograph: Dara Mac Dónaill

While coast not yet clear, investors should not assume recent strength is temporary

Despite the strong market rally, the Vix – Wall Street’s so-called fear index – was in the mid-40s last week. Photograph: Getty Images

2020 shaping up to be the year of record volatility, says Bespoke Investment

A trader on the trading floor of  the New York Stock Exchange. File photograph: Johannes Eisele/AFP via Getty Images

Ordinary investors not panicking in coronavirus crash, data strongly suggests

‘It’s not easy to buy when the news is terrible,’ says Howard Marks. Photograph: Christopher Goodney/Bloomberg

The Oaktree Capital founder’s current memos are required reading for serious investors

The New York Stock Exchange. Of the 15 bear markets since 1950, the initial major low was retested on all but one occasion. Photograph: Johannes Eisele/AFP via Getty Images

Rebound means stocks are now back to where they were just 10 months ago

Ignore overconfident forecasters, says Ritholtz Wealth Management’s Ben Carlson

No one knows if the recent rally represents a dead cat bounce or a genuine market bottom

March was like eight average months stuffed into one, says Ritholtz Wealth Management’s Nick Maggiulli.

There’s nothing normal about recent market activity

Were bears ‘right’ when warning of imminent collapse every year of the last decade? Photograph: Getty Images

Permabears haven’t been slow to say ‘I told you so’ after fastest bear market in history

Strong rallies often occur in bear markets, cautions Goldman, only to eventually hit new lows.

Stocks are vulnerable to further bad news; things may get worse before they get better

Optimists hope that the financial impact is sharp but brief as policymakers throw the kitchen sink at the economy. Photograph:  Kazuhiro Nogi/AFP via Getty Images)

Investors should not be surprised by another bout of market bloodshed

A man in a protective mask takes a selfie with the Charging Bull statue near Wall Street in New York. Photograph: Justin Lane/EPA

‘Dash for trash’ boosts stocks in S&P 500 bottom decile

The Fearless Girl statue in front of the New York Stock Exchange. The S&P 500 soared by 9.4 per cent  on Tuesday despite the bear market. Photograph: Angela Weiss/AFP via Getty Images

Bounce shows much bad news had already been baked into market prices

Robo-analysts issue recommendations that are “substantially more negative” than traditional analysts’; almost a quarter of ratings (24 per cent) are sell recommendations, compared to just 6 per cent among traditional analysts. Photograph: Istock

Study suggests robo-analyst firms’ stock advice more profitable than that of their human counterparts

Warrne Buffet is sitting on a record $128 billion in cash. Photograph: Johannes Eisele/AFP

Seven of Buffett’s top nine holdings down between 34 and 44 per cent but he’s unlikely to be bothered

US president Donald Trump’s emphasis on the economic risks posed by the Covid-19 shutdown is shared by some in the business community. Photograph: Drew Angerer/Getty Images

Reopening US economy prematurely would be major financial mistake

Bill Miller is famous for beating the S&P 500 15 years in a row between 1991 and 2005

Bill Miller’s strategy of buying when there’s blood in streets pays off most of time, but not always

 A Tesla charging station in San Ramon, California, USA. Photograph: John G Mabanglo/EPA

Chaos caused by coronavirus outbreak is what catalysed company’s plummeting share price

Order types aside, it’s also obvious that traders need to take smaller positions right now. Photograph: iStock

Safer to use limit and stop-loss limit orders, which help you control worst-case price

US stocks have experienced their fastest-ever move from all-time highs to a bear market. Photograph: Johannes Eisele/AFP via Getty Images

Investors are always scared during bear markets but this is different

Trader Michael Capolino at the New York Stock Exchange on Thursday. The bourse stopped floor operations at the end of the day after two people who work in the building were tested positive for Covid-19. Photograph: Justin Lane/EPA

Stocktake: Bank of America’s Bull & Bear Indicator falls to 1.7 as panic sets in

Donald Trump’a  Oval Office address last Wednesday really spooked investors. Photograph: Doug Mills/Pool via Reuters

US president’s ‘disaster speech’ caused futures markets to tank

Wall Street, New York. It took only 20 trading days in the current descent for the Dow Jones to fall from all-time highs into a bear market. Photograph: Stan Honda/AFP/Getty Images

Goldman Sachs says the current apocalyptic mood won’t persist but not everyone agrees

A pedestrian walks past quotation boards displaying a share price from the Tokyo Stock Exchange. Photograph: Kazuhiro Nogi/AFP

Buying into a collapsing market is tricky. How should investors respond?

Market advances tend to be relatively slow, steady affairs that build over time, but declines are often rapid and violent.   Photograph: Kiyoshi Ota/Bloomberg

‘These are the days when you don’t need financial advice, you need a psychologist’

How far stocks fall depends not only on news flow, but on valuations. Photograph:  EPA/Justin Lane

The battering of European stocks mean they now look very cheap relative to history

Board displaying stock prices for Japanese companies on the Tokyo Stock Exchange in Tokyo on March 3, 2020. Photograph: Kazuhiro Nogi/AFP/Getty Images)

Not necessarily logical to spend all your cash, as we have no idea how negative things will get

Emergency rate cuts outside scheduled meetings only happen in times of obvious turmoil, such as following the collapse of Lehman Brothers. Photograph: Oli Scarff/Getty

History shows emergency cuts usually followed by significant underperformance

US federal reserve Chairman Jerome Powell departs after giving a press briefing, after the surprise announcement the FED will cut interest rates. Photograph: Eric Baradat/AFP/ Getty Images)

‘Sizeable hit from the coronavirus could easily catalyse a global recession’

Various behavioural biases impact on how  investors react to an uncertain market climate. Photograph:  Eamonn Farrell/RollingNews.ie

Personal classification of risk and danger are key determinants of market behaviours

More articles