Stocks are Now in 'Complete Bitcoin Territory,' Asset Manager Says

  • Asset management firm Fasanara Capital compared stock valuations to bitcoin in that "it is totally disconnected from fundamentals," its chief executive told CNBC
  • Impending tipping point for markets is due to a synchronicity of enterprise overvaluation, high indebtedness, low cash balances and a drawback in public flows
  • Still, a major selloff hasn't arrived, and many market-watchers continue to celebrate the enduring bull run

Fragile markets are "on the edge of chaos," according to one asset management firm, which has compared what it deems an overvalued stock market to cryptocurrency bubbles.

"Stocks are in complete bitcoin territory," Francesco Filia, chief executive at asset management firm Fasanara Capital told CNBC Wednesday. The impending tipping point for markets, per Fasanara's analysis, is due to a synchronicity of enterprise overvaluation, high indebtedness, low cash balances and a drawback in flows from central banks.

"Valuations on stocks sometimes feel like bitcoin because in a way it is totally disconnected from fundamentals," Filia explained. "It's purely based on sentiment and flows from central banks and the private passive investment community."

Read the full article on CNBC.com

 

News and Commentary

PRECIOUS-Gold steady in slow trading, muted dollar supports (Reuters.com)

Bitcoin price plunges below $4,500 mark in new 2018 low (TheGuardian.com)

Wall Street tumbles as Apple, internet stocks swoon (Reuters.com)

PRECIOUS-Gold firm as uncertainty about U.S. rates saps dollar (Reuters.com)


Image Credits: Reuters.com

Brexit deal latest news: Spain threatens to veto agreement over Gibraltar clause (Telegraph.co.uk)

Markets think Powell ‘blinked’ in Dallas (MarketWatch.com)

Gold worth $37 billion traded in London each day, new data shows (Reuters.com)

2018 U.S. DOLLAR RALLY SHATTERS EXPECTATIONS! (WealthResearchGroup.com)

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