By: Steve Smith
I’ve been willing to accept the stock market rebound but it appears to be approaching a dangerous speculative state which is due for a correction. We’ve made the case that the huge rebound is stocks can be justified by various factors from the economic shutdown being an artificial externality rather than a systemic failure or secular slowdown to the massive monetary and fiscal stimulus to simply the companies that comprise and carry the most weight, such as “Apple (AAPL) and “Microsoft (MSFT)” have actually benefited from the viral lockdown.
But over the past week or two, we’ve had behavior indicative of unsustainable speculation bordering on euphoria. It’s evident across a spectrum in which troubled companies such as “Hertz (HTZ)” or “Luckin Coffee (LK)” have seen shares more than double to new blue sky electric vehicle darling like “Nikola (NKLA)” has soared 700%
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