It is easy to spot bubbles. Too easy: They seem to be almost everywhere, almost all the time. Worse still for those of us who try to spot excess, much of the stuff that was labeled frothy in recent years went on to make big money in 2020 for those who bought into it anyway.
The question for investors: Were the bubble calls just wrong? Or are we in a new era of wild speculation driven by cheap money that must inevitably come to an end?
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
Covid-19 Pandemic Likely Improved Your Commute to Work: Working from home is likely here to stay, and fewer cars on the road during rush hour means less traffic.
PLANNING & INVESTING
From Stocks to Bitcoin, Investors Bet the ‘Everything Rally’ Will Continue: A historic nine-month advance is raising expectations that coronavirus vaccines and stimulus programs will keep markets surging in 2021.
Risk Takers Bet Asset-Backed Bonds Will Catch Up: Securities that have recovered only haltingly from last spring’s rout are getting fresh attention.
From Dow Jones Newswires
U.K. travel stocks have staged an impressive rally since early November on upbeat coronavirus vaccine news and should continue to recover in 2021, CMC Markets says. “There is a view in the markets that the rate at which vaccinations will be rolled out will ramp up the further we go into 2021, and that should help lift the travel industry out of its rut,” CMC Markets analyst David Madden says. The U.K. jobless rate may rise in coming months as the government’s furlough scheme finishes at the end of April, potentially prompting some consumers to curtail their spending, but professionals who work from home and have saved money are likely to travel when restrictions are lifted, he says. ([email protected])
Improved sentiment in the equities market and the perception that interest rates will remain low for several years should lead to increased merger and acquisition activity in 2021, CMC Markets says. “The pandemic has separated the wheat from the chaff and companies that are emerging from the crisis in good shape are likely to want to take advantage of the bargains that are available,” CMC Markets analyst David Madden says. M&A activity was strong in 2020, “all things considered,” but heightened uncertainties meant companies took a cautious stance, Madden says. M&A in Europe fell to $1.1 trillion in 2020 from $1.3 trillion last year, while M&A in the U.S. dropped to $2.1 trillion from $2.6 trillion, he says. ([email protected])
BUSINESS & PRACTICE
Manufacturers Want Biden to Boost ‘Buy American’ Practices: President-elect has proposed more domestic government purchasing, which President Trump and others pursued with mixed results.
Renewable-Energy Investors Seek Returns in Project Development: High volumes of capital flowing into the sector are squeezing the returns produced by operating assets.
CFOs in 2021 Will Keep an Eye on These 10 Things: Economic recovery, corporate taxes and mergers and acquisitions are expected to be top of mind for many finance chiefs.
Economists Expect Tough Sledding in Winter, Then a Rebound: Firms face a difficult first quarter as Covid-19 cases surge, but stimulus and vaccines offer hope for a snapback later in 2021.
TRAVEL & LIFESTYLE
Can Spa Resorts Still Be Relaxing During Covid?: Destination spas are positioning themselves as refuges during the pandemic—moving treatments outside and getting creative with their stress-busting cures.
The Wealth Adviser Briefing covers topics of interest to wealth managers, financial planners and other advisers. The content is curated by the Dow Jones Newswires team using articles from the Newswires, Barron’s, MarketWatch and The Wall Street Journal. The briefing is delivered to subscribers by email each workday morning at 6:30 a.m. ET. You can sign up here for email delivery.
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