“There’s a lot of stuff going on right now.
I don’t think we’ve really seen the last of it.”–Markets analyst David Purdom, co-founder and CEO of research firm MarketsandMarketsMarkets, on Wall Street’s last gasp of stock price bubbles and how investors may be ready to take a bite out of it.
MarketsandMarkETSMarkets&MarketsPurdom says it’s hard to say when a stock will go public or when a company will actually see a big spike in profits.
“We have a tendency to underestimate what will happen over the long term,” he said.
“We think the last wave of bubble was about a year ago, so we’ve seen the second wave, so it could be two years from now.”
“There’s always going to be volatility, but if you look at the data, stocks are always going up and down.
So I think we’re in a period of very low volatility right now.”
The Financial Industry Regulatory Authority (FINRA) recently said it will allow for “emergency” trading of stocks and mutual funds, though it has yet to set a timeline for the rules to be implemented.
For now, stock trading in stocks is limited to people who are registered with FINRA, which also requires companies to provide quarterly financial statements.
The SEC has also been in the midst of a $1.5 billion class-action lawsuit over the “shadow banking” scandal that saw hedge funds like Blackstone and Renaissance Technologies illegally funnel hundreds of millions of dollars in loans to some of the biggest banks and investors.
The SEC also launched a probe of how the SEC handled its initial investigation into the “black box” data brokers.
