| In a great start to the year for equity markets, the JSE rose 5% last month, reaching a new record and improving on it despite ongoing lockdowns and the lingering impact Covid-19 will have on economic growth - not just here but around the globe. In Zoomed Out, Today's Trustee editorial director Allan Greenblo tackles the contractions that we're seeing in financial markets at the moment, what's been driving the move up and whether you should just sit tight if the bubble bursts. Market speculators are partly behind the latest upsurge, in the US at least. If you missed this week's Magic Markets podcast, in which The Finance Ghost and Mohammed Nalla (Moe-Knows) discuss the short squeeze strategy that led to stratospheric rise in GameStop's share price, follow this link for free access. If you don't know how short strategies work, don't worry - they explain it all. Also today, Huge Group's shareholders have approved its offer to buy Adapt IT, Brait is examining options for its Virgin Active chain of health clubs outside South Africa and DRDGOLD is cashing in on a higher rand gold price. Meanwhile, Bowler Metcalf will also report stronger interim results and property group EPP has been given the go-ahead to allow most of the stores at its Polish shopping centres to reopen. I hope you have a good day. Stephen Gunnion Managing Editor, InceConnect
The latest from Ingham Analytics "Elevator to the stratosphere?" is especially timely as it gives further colour on what is happening in US markets, with news currently dominated by the likes of GameStop. They say that short-term, out-of-the-money call options have been soaring with puts lagging well behind calls. Warning signs are flashing. How to protect yourself? They continue to favour a reflation trade in out-of-favour sectors in the US. | 