Investor Anxiety Turns to Greed

Wall Street Journal: “Now, some analysts see recent signs of a ‘melt-up’ in which investors are buying things simply because they are rising, with little regard for economic fundamentals or the mixed signals sent by assets including stocks and bonds rising together. Traders are riding the momentum in everything from large technology stocks like Apple Inc. to the precious metal silver.”

“Such powerful rises are a concern for analysts who worry that the investments will suddenly fall in tandem if trading patterns shift or the pandemic worsens, driving a broad market retreat. Memories remain fresh of a bruising March selloff during which investors sold stocks and dumped assets normally deemed havens as governments halted business and travel.”