Bullish fund managers are starting to lay down bets that it will be this way for a while.
Jul 9, 2020 - Economy & BusinessThe disconnect shows how the coronavirus has thrown all bets off.
Jul 3, 2020 - Economy & BusinessThe list is heavily filled by speculative bets like cruise operators and airlines.
Jun 18, 2020 - Economy & BusinessMillennials and Gen Zers are opening online brokerage accounts at a record pace.
May 6, 2020 - Economy & BusinessNYSE set a $7.25 per share reference price, though actual opening price could vary.
16 hours ago - Economy & BusinessThe government has been trying to clamp down on the illegal trading tactic.
Sep 29, 2020 - Economy & BusinessIllustration: Sarah Grillo/Axios
AppHarvest, a Morehead, Ky.-based developer of large-scale tomato greenhouses, is going public via a reverse merger with a SPAC called Novus Capital (Nasdaq: NOVSU). The company would have an initial market value of around $1 billion.
Why it's a BFD: This is about to be a "unicorn" based in one of America's poorest congressional districts. AppHarvest CEO Jonathan Webb tells Axios that the company will employ around 350 people in Morehead by year-end, and that its location allows its product to reach 75% of the continental U.S. within a one-day drive.
The gap between the weighting of the five largest companies in the S&P 500 and the 300 smallest rose to the highest ever at the end of August, according to data from the Leuthold Group.
Why it matters: The concentration of wealth in a few massive U.S. tech companies has reached a scale significantly greater than it was before the dot-com bubble burst.
The S&P 500 hit its highest level ever earlier this month — but as September closes out, the index is teetering on the brink of correction territory.
Where it stands: As of Thursday’s close, the S&P 500 has sunk 9.3% below its record high. Slight gains on Thursday pushed it a bit further away from the 10% decline that would mark a correction — but investors say volatility could be here to stay.
One paradox of the recent bull-market run is that it has taken place in the face of consistent selling by investors in ETFs and mutual funds.
The big picture: Monthly flows from actively-managed stock-market funds have been negative for years, and while flows into passively-managed funds have been positive, they have generally been smaller.
Illustration: Aïda Amer/Axios
It's the rebound economists didn't see coming.
Why it matters: America did nothing that should have been necessary to really get the economy moving again. We didn't get the coronavirus under control, and we gave up on fiscal stimulus after a single short-lived round of it. Nevertheless, we're about to close out by far the strongest quarter of economic growth in American history.
Illustration: Eniola Odetunde/Axios
The market looks like it may be throwing another tantrum, investors say. But the cause is different this time around.
What's happening: This selloff is beginning to look like the 2013 taper tantrum, which roiled markets as U.S. government yields rose in response to an expected reduction of the Fed's quantitative easing (QE) program.
Silicon Valley venture capitalists are no longer content with investing in startups and then eventually handing them off. Instead, many are now forming SPACs, or blank-check acquisition companies, to ride tech unicorns into the public markets themselves.
Axios Re:Cap digs into this trend with the co-founders of a new tech SPAC called Reinvent Technology Partners: Reid Hoffman, a co-founder of LinkedIn and partner at Greylock, and Mark Pincus, the founder and former CEO of Zynga.
Illustration: Annelise Capossela/Axios
The blank-check boom of 2020 is sapping the 2021 IPO market of prospective issuers.
Driving the news: SPAC godfather Alec Gores this morning announced the market's largest-ever deal, with Gores Holdings IV (Nasdaq: GHIV) agreeing to buy wholesale mortgage lender UWM at an enterprise value of approximately $16.1 billon.