Traders Are Risking It All on Bets That Market Boom Will Last
- Junk bond spreads narrow; growing demand for meme stocks
- ‘People feel obligated to fully commit’: Academy’s Tchir
Photographer: Sukanya Sitthikongsak/Moment/Getty Images
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Industrial shares are on a tear, junk-bond spreads are narrowing, quants are ramping up Treasury shorts and everyone is piling into stocks.
What once was a posture of skepticism among investors has morphed into something approaching euphoria. Cash and hedges are out, replaced by demand for everything from small caps to meme stocks. Fueling the surge is data showing the US economy is thriving amid mounting evidence the Federal Reserve is beating inflation.