THE GHOST TRAIN
THE FINANCE GHOST: Have you herd?
An investor somewhere is converting rand to dollars at our worst exchange rate, all for the privilege of buying a stock like Nvidia at a record high. What could possibly go wrong?
25 May 2023 - 05:00
We need to talk about herd mentality, particularly when a stock like Nvidia is up nearly 120% this year alone.
My favourite sentiment indicator is the ARK Innovation exchange traded fund ($ARKK) vs the Nasdaq 100 and S&P 500. Year to date, $ARKK and the Nasdaq 100 are both up 27%, with the S&P 500 up only 9.6%. Tech is frothy again, driven by excitement around artificial intelligence. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.