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Back in the ’90s a Fed chief warned about ‘irrational exuberance’ in the markets. Stocks rose 105% over the next 4 years

Gen Zers are no doubt baffled by such recent headlines as “Fed Chair Powell just had his ‘irrational exuberance’ moment, Ed Yardeni says,” and “Did Jerome Powell Just Say ‘Irrational Exuberance’?” Those headlines refer to a long-ago event involving a previous Fed chair, dizzyingly high stock prices, and an eventual market crash. But beware: Some market soothsayers misinterpret that earlier episode, and getting it wrong could misguide today’s inve...

Jennifer Jones in Investing 2025-12-03 14:23:20

A sports bettor turned $15 into $140K from a 3-leg parlay. It’s the exception to the risky bet making sportsbooks billions

A small risk seldom leads to a big reward, but it’s certainly not impossible. Last week, a sports betting customer won more than $142,000 from a three-leg parlay, wagering three NFL tight ends would score the first touchdowns of their respective games, DraftKingsposted on X. The initial wager was just $15.Recommended VideoThe exponentially larger hit from a meager wager is the temptation of a parlay. It’s a type of betting that, instead of requir...

Jane Williams in Investing 2025-12-04 19:46:51

Dow jumps 413 points in 5 minutes as Trump reassures markets ‘it will all be fine’

And back up goes Wall Street. U.S. stocks are rallying Monday after President Donald Trump said “it will all be fine,” just days after he sent the market reeling by threatening much higher tariffs on China.Recommended VideoThe S&P 500 jumped 1.1% to recover a little less than half of its drop from Friday, which was its worst since April. The Dow Jones Industrial Average was up 413 points, or 0.9%, as of 9:35 a.m. Eastern time, ...

Jennifer Brown in Investing 2025-12-22 09:29:45

Gold drives toward $4,000 as U.S. government shutdown drags on

Gold reached a fresh record, rallying as much as 2.2% to top $3,970 an ounce.Recommended VideoThe upswing, which follows a run of seven weekly gains, comes as the US government shutdown has delayed key data, further obscuring a murky economic outlook. With a lack of official figures, traders are depending on private reports for signals, while the US central bank is struggling to assess changing conditions. Traders are still pricing...

Emily Davis in Investing 2025-12-23 04:19:08

BofA sees gold hitting $4,000 per ounce in the second quarter of 2026. Here’s why the bank sees more room to run after recent record highs

Gold prices have indeed soared to all-time highs in 2025, prompting headlines about a historic rally. But according to Bank of America (BofA) Global Research, the story is more nuanced: The gold sector, while booming, hasn’t returned to all of the metrics that defined previous cyclical peaks, especially regarding its value relative to the broader equity market and its own historical valuations.Recommended VideoThis year, gold surged past major th...

John Williams in Investing 2025-12-07 16:40:57

Wall Street shrugs off shutdown threat as S&P 500 heads for fifth straight winning month

 U.S. stocks coasted to the finish of their latest winning month. The S&P 500 rose 0.4% Tuesday to close out its fifth straight winning month after setting a record last week. The Dow Jones Industrial Average gained 0.2%, and the Nasdaq composite rose 0.3%. The quiet trading came as a potential shutdown of the U.S. government loomed. Past shutdowns have had limited impact on the economy and stock market, and many investors expect somethi...

Sarah Davis in Investing 2025-12-17 23:12:25

AI isn’t in a bubble—the cash (and the hype) are real, these analysts say

Despite warnings of an AI bubble, some analysts are arguing that AI demand and growth remain strong, with tech sector investment driven by real cash flows, not debt. Current valuations are not as extreme as the dotcom era, and even a correction is unlikely to trigger a U.S. recession, they say.The S&P 500 hit a new all-time high Wednesday (up 0.58% on the day), driven as usual by tech stocks (the Nasdaq Composite rose 1.12%), despite the fact...

John Davis in Investing 2025-12-15 02:36:35

Central banks will end up holding Bitcoin in their reserves even though it is ‘backed by nothing,’ Deutsche Bank predicts

Deutsche Bank predicts Bitcoin could be added to central bank reservesby 2030 as its volatility falls and its behavior resembles gold, despite not being “backed by anything.” Recent surges in gold and Bitcoin, driven by central banks seeking diversification and companies creating Bitcoin “treasuries,” show Bitcoin’s growing appeal as a safe-haven asset.The price of Bitcoin briefly topped $125,000 yesterday, a new record high. And as its price goe...

David Brown in Investing 2025-12-11 18:46:59

Investor who manages $900 million in assets says there’s one investing hack everyone should know: ‘I wish they would teach it more in high school’

Mohnish Pabrai, a prominent value investor who manages approximately $900 million in assets through his Pabrai Investment Funds, has identified a simple mathematical concept he believes should be fundamental education for every investor: the Rule of 72.During a recent appearance on The Diary of a CEO, a popular business podcast hosted by British entrepreneur Steven Bartlett, Pabrai emphasized the importance of this financial principle. The R...

Sarah Davis in Investing 2025-12-05 16:43:29

‘Risk of correction elevated’: BofA rings alarm bells on gold as price nears $4,000 an ounce

Gold has been on a tear lately, notching several record highs, most recently nearing the $4,000 mark, as investors and central banks seek a safe haven amid a business climate full of uncertainty.Recommended VideoAsFortunehas reported, Goldman Sachs is still bullish, calling for gold to hit $4,300 an ounce by late 2026, while Mark Haefele of UBS agrees that gold will remain an essential hedge. Deutsche Bank thinks that the gold rally shows that, d...

David Brown in Investing 2025-11-24 16:57:51

Nobody thinks a government bond crisis is going to happen, but Wall Street is talking about it anyway

Wall Street is discussing a possible government bond crisis,not because one is imminent, but because Europe’s fiscal instability makes U.S. bonds seem safer by comparison. France and the U.K. are seen as the riskiest for a crisis, even though yields there remain relatively contained, and U.S. yields have declined despite deficit concerns.Investors are usually focused on the U.S. government bond market for two reasons: It’s the biggest, and the do...

Emily Davis in Investing 2025-12-11 16:57:07

Oracle founder Larry Ellison has pledged to give away 95% of his $393B fortune—but sudden leadership changes fuel a mystery

Oracle founder and potential TikTok overlord Larry Ellison’s current net worth is estimated at $393 billion, making him the second-richest person in the world in 2025, only behind Elon Musk. His fortune has grown rapidly due to massive gains in Oracle’s stock, driven by the AI boom, and a significant stake in Tesla.Recommended VideoEllison pledged to donate 95% of his wealth as part of the Giving Pledge in 2010. Since then, he’s distanced himself...

John Williams in Investing 2025-12-03 23:11:10

U.S. gold reserves hit $1 trillion in value after record rally

The US Treasury’s gold reserves have surpassed $1 trillion in value — more than 90 times what’s stated on the government’s balance sheet — as the precious metal breaks new all-time highs. Recommended VideoThe world’s biggest gold stash passed the milestone after prices rose above $3,824.50 an ounce on Monday, in a 45% rally this year. Its official value, however, based on the $42.22-an-ounce price set by Congress in 1973, is fixed at just ov...

Emily Williams in Investing 2025-12-16 11:16:36

The S&P 500’s PE ratio just hit 30. That number is a terrible omen for investors

On August 28, the S&P 500’s price-to-earnings ratio reached a towering reading ofnearly30, the actual number that day was a whisker short at 29.85. Now it’s official: Around 3 PM on Monday, September 22, the big cap index sailed beyond that historic barrier, gaining 32 points or 0.48%, a surge that pushed the multiple over the landmark to 30.09.Recommended VideoEquity analysts and pundits, however, virtually never mentioned that the most prom...

John Miller in Investing 2025-12-09 04:51:50

What bubble? By this measure, the AI boom still isn’t at dotcom bust levels

Relentless stock market highs, astronomical valuations for OpenAI, and reports of hyperscalers taking on more debt have stoked fears that the AI boom is another tech bubble ready to pop.Recommended VideoEven OpenAI CEO Sam Altman acknowledged this summer that investors were getting “overexcited about AI” and drew parallels with the dotcom bubble.But Capital Economics pointed out that year-ahead earnings forecasts for S&P 500 companies—forward...

Jennifer Williams in Investing 2025-12-14 21:20:13

Markets look unstoppable, but JPMorgan CEO Jamie Dimon sees a 30% chance of a correction: ‘I’m far more worried than others’

Jamie Dimon, CEO of the world’s most valuable bank and architect of the “fortress balance sheet” that helped JPMorgan emerge unscathed from the 2008 financial crisis, believes investors are significantly downplaying the risk of a major market correction.Recommended VideoWith stock market valuations and concentration at record highs, some high-profile tech leaders like OpenAI CEO Sam Altman as well as institutions such as the Bank of England have ...

David Brown in Investing 2025-11-29 09:09:22

‘This team is guided by science’: Kenvue chief hits back at Trump and RFK Jr.’s Tylenol autism claims in memo to 20,000 employees

Kenvue’s interim CEO is defending Tylenol’s safety after President Donald J. Trump and Health Secretary Robert F. Kennedy Jr. linked the pain reliever to autism and crashed the company’s shares.Recommended VideoIn a memo shared with around 20,000 employees, Kenvue Interim CEO and Director Kirk Perry stressed that many credible public health and medical professionals maintain that Tylenol is safe for women to take during pregnancy.Here is the full...

John Davis in Investing 2025-12-04 20:40:45

Jerome Powell just rattled markets by calling stocks ‘highly valued.’ BofA finds 19 of 20 key metrics in the S&P 500 are ‘statistically expensive’

Federal Reserve Chair Jerome Powell made the kind of headlines this week that give stockbrokers ulcers. After a speech in Rhode Island on Tuesday, the central banker was asked about frothiness in the markets. AsFortune’s Jim Edwards reported, his reply contained six words that investors didn’t want to hear: “Equity prices are fairly highly valued.” The S&P 500 fell 0.55% on Tuesday and another 0.28% on Wednesday. Still, that’s after a string ...

Jane Williams in Investing 2025-12-08 23:31:19

The ‘godfather of financial independence’ says young people should do two things to build wealth—and it’s nothing ‘silly’ like buying a house

Renowned financial educator JL Collins has some advice for millennials and younger generations struggling to build wealth. Collins, widely known as the “Godfather of Financial Independence,” emphasized two fundamental strategies in a recent conversation with the comedian Hasan Minhaj: Invest in Vanguard Total Stock Market Index Fund Admiral Shares, and rent instead of buying a home.Minhaj, who rose to fame as a correspondent on “The Daily Sh...

Jennifer Jones in Investing 2025-12-13 19:18:27

Stocks rise towards more records, helped by Elon Musk’s purchase of $1 billion worth of Tesla shares

Wall Street is rising toward more records on Monday at the start of a week that could show whether the U.S. stock market’s big recent rally has been overdone or prescient.Recommended VideoThe S&P 500 rose 0.4% and was on track to top its latest all-time high, which was set last week. The Dow Jones Industrial Average was up 33 points, or 0.1%, as of 1:54 p.m. Eastern time, and the Nasdaq composite was adding 0.8% to its own record.Tesla helped...

David Davis in Investing 2025-11-29 19:00:21

Kraken’s co-CEO says he once threw away Bitcoin: ’It was worth maybe $300 million to $400 million today’

When it comes to investments, hindsight can sometimes be 20/20—a lesson that Kraken co-CEO Arjun Sethi learned the hard way.Recommended Video“One of my developers from my first company gave me a desktop with Bitcoin that he had mined. This was in 2009, and then I threw it away. I think it was worth maybe $300-$400 million today,” Sethi said in an interview with Crypto Editor Jeff John Roberts atFortune‘s Brainstorm Tech conference.Arjun Sethi is&...

Jennifer Miller in Investing 2025-12-24 14:59:27

Trump’s new China tariff sparks wide sell-off, wiping 2.7% off the S&P 500 on the bull market’s third birthday

The third anniversary of the bull market took an unexpected turn on Friday as President Donald Trump’s latest comments on China sent shock waves through financial markets, erasing 2.7% from the S&P 500 in a single trading session. What was expected to be a modest celebration of America’s longest stretch of market gains in a decade quickly transformed into another episode of geopolitical brinkmanship, this time over the world’s most strategic ...

Robert Davis in Investing 2025-12-17 16:38:25