Reuters
Analysis: Bubbles, bubbles bound for trouble?
The $6.2 billion-an-hour rise in the value of world stocks since March was dubbed the “mother of all asset bubbles” by BofA analysts last week – and all of a sudden there is a high-pitched hissing sound. Electric car doyen Tesla, which raced up 750% in last year’s frenzy, skidded into the red for 2021 on Tuesday, hit by a selloff of tech stocks and a plunge in Bitcoin, in which the carmaker recently invested $1.5 billion. Both are technically in bear markets, defined as down 20% from their latest peaks, although for ultra-volatile Bitcoin which has surged well over 1,000% since March, that was admittedly only a few days ago.