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5 Best Stories on Real Money: Beating Covid, Market Bubble

5 Best Stories on Real Money: Beating Covid, Market Bubble

Quiz: What’s one advantage the president has that the market does not?

Answer: He can get a doctor’s note telling you everything is wonderful. 

But investors? They’re left on their own, left trying to forecast when a stimulus bill will land, left watching every vaccine trial to spot a winner, left waiting up at night for earnings reports, and left tracking technical indicators for clues about what’s churning underneath the surface. 

Fortunately, investors do, however, have experts who can guide them. Helping us get through this messy, mucky October are Real Money and Real Money Pro writers Jim Cramer, Paul Price, Maleeha Bengali, Alex Frew McMillan, and Jim Collins.

Jim Cramer: Let’s Beat Covid-19

Cramer lays out what is happening right now to get the pandemic under control and what it will look like not that long from now — even before a vaccine is available.

Here’s the tests and therapies that Cramer contends will change the channel on the Covid outlook.

Price: Give Stocks a Second Chance 

Few stocks go up in straight-line moves. Instead, writes Price, most tend to spurt higher, tail off, then rise again. While the interim selloffs often shake out traders who mainly trade on momentum, plus those who fail to understand the companies’ true worth, there’s still opportunity awaiting for those willing to give second chances.

See how Price would play a select group of stocks — even following their earlier rebounds from March’s lows.

Jim Collins: There’s Trouble in Bubbleland 

We are in the midst of a unprecedented financial bubble, writes Collins. Will a recovery from the Covid-19 lockdowns ease the bubble before it bursts in our faces?

Read why Collins isn’t holding his breath, and how the situation could play out for insurers and others. 

Bengali: It’s Value Vs. Growth. Pick One.

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Former Goldman Sachs CEO Lloyd Blankfein says a wash of free money is creating ‘bubble elements,’ citing SPAC market

Former Goldman Sachs CEO Lloyd Blankfein says a wash of free money is creating ‘bubble elements,’ citing SPAC market



Lloyd Blankfein wearing a suit and tie: Brendan McDermid/Reuters


© Brendan McDermid/Reuters
Brendan McDermid/Reuters

  • Goldman Sachs’ former CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money is clearly creating bubble elements in the markets.” 
  • The banking titan blamed low interest rates for creating free money for large investors. 
  • Blankfein also cited speculation in the growing SPAC market: “Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan.”

Former Goldman Sachs CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money” due to low interest rates is “clearly creating bubble elements in the markets.”

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“Given that money is kind of free, it presumably is not being allocated in a disciplined way, and so there are bubble elements to this,” Blankfein said. “Look at the credit market — people are lending to what historically would have been weak credits for very little money.”

The banking titan also referred to the SPAC market as a sign that the market is taking on much speculation lately. In this year alone, about 110 blank-check firms led by notable investors like Chamath Palihapitiya and Bill Ackman have raised over $40 billion on public markets. That’s over $26 billion more than what last year’s SPACs raised.

Read more: Citi’s US equities chief warns of an ‘extreme peak’ in earnings revisions heading into the crucial reporting season — and explains why it makes stocks vulnerable to a pullback in the weeks ahead

“Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan,” Blankfein said. 

The banking titan can be added to the growing list of investors voicing concerns about the speculative nature in markets. Last week, venture capitalist Bill Gurley said the stock market reminded

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Analysis: The bubble is the real MVP of this NBA season

Analysis: The bubble is the real MVP of this NBA season

NBA Commissioner Adam Silver waves to Los Angeles Lakers owner Jeanie Buss sitting nearby as he attends Game 2 of basketball's NBA Finals between the Lakers and the Miami Heat on Friday, Oct. 2, 2020, in Lake Buena Vista, Fla.

NBA Commissioner Adam Silver waves to Los Angeles Lakers owner Jeanie Buss sitting nearby as he attends Game 2 of basketball’s NBA Finals between the Lakers and the Miami Heat on Friday, Oct. 2, 2020, in Lake Buena Vista, Fla.

AP

The bubble hasn’t burst.

And the finish line is in sight.

NBA Commissioner Adam Silver acknowledges that he had doubts if this was even possible. So did many players. Racial injustice protests were happening around the country and coronavirus positivity rates were skyrocketing in Florida when the NBA moved into Walt Disney World — the league calls it a campus, everyone else calls it a bubble — three months ago. It wasn’t a stretch to think it was only a matter of time before trouble started.

Never happened. The NBA got the games in and kept the virus out. Players managed to find a balance between what they felt were their basketball obligations and social responsibilities.

This season, a year that was longer than a year and difficult in almost every imaginable way, is nearing an end; the Los Angeles Lakers have a 3-1 lead in the NBA Finals over the Miami Heat, with a potential title-clincher in Game 5 coming Friday night.

“The job’s not done,” Lakers forward LeBron James said.

He’s right, on many levels. The NBA came here to crown a champion; that hasn’t happened yet. Players came here to use their platform to fight against racial inequality and voter suppression; those efforts continue. And the coronavirus pandemic rages on; no end in sight there, either.

Outside the bubble, problems reign.

Inside the bubble, things are not perfect. It has not been easy. Often, it was not fun.

But it worked.

“I wanted everybody to have perspective on how

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ESG Market Record Is Causing Some Bubble Anxiety: Green Insight

ESG Market Record Is Causing Some Bubble Anxiety: Green Insight

MsMinister of latvia in Copenhagen Denmark

Photographer: Francis Dean/Corbis News

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The investing world of environmental, social and governance just broke through another barrier, and the growth is starting to raise questions (and even concern) about how much bigger it can get.

Explore dynamic updates of the earth’s key data points

Total green bond issuance topped $1 trillion in the past week, joining ESG-focused funds that have a similar amount in assets under management. In the past month alone, more than $50 billion of green bonds were sold, including debuts in Germany by a trio of automakers including Volkswagen, and JPMorgan, the biggest U.S. bank by assets, according to data compiled by BloombergNEF.

Is it a bubble? Jared Dillian, an investment strategist at Mauldin Economics, wrote this week in Bloomberg Opinion that he thinks it just might be. “ESG is nothing but a passing investment fad, not unlike smart beta, the BRICs, structured products or any of the myriad market bubbles over the last 25 years, small and large,” he said. 

Still, analysts at Bank of America expect another $450 billion of green, social and sustainable debt to be issued in 2021, roughly equaling this year’s issuance. Sales of green bonds, where proceeds are ring-fenced for environmental projects, will account for “the bulk” of the transactions, Bank of America said.

The Bank for International Settlements, which is often dubbed the central bank for central banks, said last month that it has seen no proof that green bonds result in lower corporate carbon emissions. The median change in carbon intensity—the ratio of carbon emissions to revenue—of green bond issuers has been minimal over time, the BIS said.

Concern about the lack of standards in the green bond market surfaced

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The bubble is the real MVP of this NBA season

The bubble is the real MVP of this NBA season

LAKE BUENA VISTA, Fla. (AP) — The bubble hasn’t burst.



NBA Commissioner Adam Silver waves to Los Angeles Lakers owner Jeanie Buss sitting nearby as he attends Game 2 of basketball's NBA Finals between the Lakers and the Miami Heat on Friday, Oct. 2, 2020, in Lake Buena Vista, Fla. (AP Photo/Mark J. Terrill)


© Provided by Associated Press
NBA Commissioner Adam Silver waves to Los Angeles Lakers owner Jeanie Buss sitting nearby as he attends Game 2 of basketball’s NBA Finals between the Lakers and the Miami Heat on Friday, Oct. 2, 2020, in Lake Buena Vista, Fla. (AP Photo/Mark J. Terrill)

And the finish line is in sight.

NBA Commissioner Adam Silver acknowledges that he had doubts if this was even possible. So did many players. Racial injustice protests were happening around the country and coronavirus positivity rates were skyrocketing in Florida when the NBA moved into Walt Disney World — the league calls it a campus, everyone else calls it a bubble — three months ago. It wasn’t a stretch to think it was only a matter of time before trouble started.



Los Angeles Lakers forward LeBron James celebrates during the second half in Game 4 of basketball's NBA Finals against the Miami Heat Tuesday, Oct. 6, 2020, in Lake Buena Vista, Fla. (AP Photo/Mark J. Terrill)


© Provided by Associated Press
Los Angeles Lakers forward LeBron James celebrates during the second half in Game 4 of basketball’s NBA Finals against the Miami Heat Tuesday, Oct. 6, 2020, in Lake Buena Vista, Fla. (AP Photo/Mark J. Terrill)

Never happened. The NBA got the games in and kept the virus out. Players managed to find a balance between what they felt were their basketball obligations and social responsibilities.

This season, a year that was longer than a year and difficult in almost every imaginable way, is nearing an end; the Los Angeles Lakers have a 3-1 lead in the NBA Finals over the Miami Heat, with a potential title-clincher in Game 5 coming Friday night.

“The job’s not done,” Lakers forward LeBron James said.

He’s right, on many levels. The NBA came here to crown a champion; that hasn’t happened yet. Players came here to use their platform to fight for racial inequality and against voter suppression;

Read the rest