In the application of holding, trading volume of U.S. stocks more than tripled in the first three months of this year, and will remain largely unchanged in 2019. In the second quarter, the figure soared again to $55.4 billion. < / P > < p > even at a time when China’s A-share market is booming, the US stock market is still attractive to Chinese retail investors because short selling is allowed and there is no limit on the rise and fall of stock prices. < / P > < p > in the eyes of investors, another key attraction of the US stock market is “rationality”, because there are more institutional investors. In China, retail investors account for a large proportion of a shares, which makes the stock price vulnerable to the fluctuation of public sentiment. At present, there are about 400 Chinese companies listed in the United States, including the popular e-commerce pinduoduo and video website B. they are also one of the reasons for attracting Chinese retail investors to invest in the US stock market. Lawrence Summers, a prominent US economist and Treasury Secretary under Clinton, said the stock market “performed better” during his administration. < / P > < p > “I sometimes have to warn against such excesses. But I can tell you that the data is very clear. On average, the stock market and corporate profits performed better during the administration than during the Republican administration. ” “It’s not just small businesses that are doing better, it’s actually capital and American companies that are doing better,” Summers said < / P > < p > summers explains that this is because “our economy is based on the middle class, and when your policies are based on supporting the middle class, it will ultimately benefit everyone.” < / P > < p > “I think he’s creating serious damage every day, whether it’s incompetence in dealing with the new epidemic, and it’s eroding American institutions and the rule of law and traditions that all Americans respect,” Summers said. < / P > < p > as the U.S. employment market shows signs of recovery, tens of thousands of aviation employees are preparing for the wave of unemployment in the coming months, and the U.S. aviation industry has suffered a heavy blow during the new crown epidemic. < p > < p > airlines in the United States have warned more than 75000 employees that they are in danger of being fired on October 1, when the $25 billion federal rescue plan, designed to protect airline employees’ salaries, will expire. < / P > < p > the troubled aviation industry and the lack of new aid programs will put employees in a dilemma. In total, U.S. passenger and cargo airlines employ about 700000 people, and other associated jobs may also be at risk. According to statistics, the losses of the four major U.S. airlines in the last quarter totaled more than $10 billion. The International Air Transport Association predicted last month that global air travel demand would not return to its level in 2019 until 2024, a year later than previously expected. This undoubtedly makes the situation of aviation industry worse. < p > < p > since the outbreak crisis, American airlines have been frantically trying to cut employees’ wages and urging them to retire early and buy out programs, which will reduce the number of involuntary layoffs. < / P > < p > in Southwest Airlines, about 28% of its employees (17000 employees) choose to leave the company or enjoy part of their paid leave. However, the airline company still announced that it plans to lay off employees or take compulsory leave in 2020 because of the weak demand. < / P > < p > according to S & P global market intelligence, as of August 9, 424 companies had filed for bankruptcy, more than in any comparable period since 2010. < / P > < p > bankruptcy has affected most industries, but consumer centric companies have been hit hardest. According to S & P global market intelligence, 100 consumer goods companies have submitted applications this year, including Penney, a large retailer. Melanie cyganowski, a partner at otterbourg, a New York law firm, said in an email to S & P’s market intelligence that the epidemic has affected companies in almost all industries, saying “the economic impact is profound.”. < / P > < p > the wave of corporate bankruptcies further weakens the notion of a rapid “V-shaped” economic recovery. Even if coronavirus can be cured tomorrow, the economic impact could last months, even years. < / P > < p > take a look at the evidence, the S & P 500 and NASDAQ are not far from their historical highs. The VIX has fallen sharply in the past month. < / P > < p > recently, speculative stocks like Kodak have also been in a frenzy. The stock price soared by more than 1000% in the short term due to the US government’s $765 million pharmaceutical raw material loan agreement. In addition, the stock prices of bankrupt companies such as Hertz also changed. < / P > < p > the CNN business fear & green index, which measures investor sentiment, is not far from the level of extreme greed.
Wall Street’s agitation suggests that this may be another bubble or market frenzy, which often ends badly. There is growing concern about the fact that, while the global economy is still in deep recession, the US stock market is climbing. < / P > < p > in addition, it is also worth noting that the company’s revenue is very poor. Marc Evans, an analyst at FactSet, said profits of Companies in the S & P 500 index plummeted nearly 34% in the second quarter, the worst drop in five years. Sales fell nearly 9%, the biggest drop in nearly four years. Currently, technology stocks such as apple, Amazon and Microsoft continue to drive the market higher thanks to strong earnings, but this may not last forever, and even quality companies may become too expensive. “The valuation of the S & P 500 keeps us up all night,” Lori calvasina, head of US equity strategy at RBC Capital Markets, warned in a report He added that the recent rise in technology stocks reminiscent of the NASDAQ Internet bubble 20 years ago. Analysts believe that despite Apple’s market capitalization approaching $2 trillion, the technology giant’s share price may still be undervalued because of news that the company plans to launch an “apple one” subscription bundle as early as October this year, so that its products can be sold at a lower price. < / P > < p > this bundled subscription package enables consumers to subscribe to Apple Music, Apple TV +, apple arcade, apple news +, fitness, icloud and other services at a lower price, thus attracting customers to subscribe to more apple services. < / P > < p > “I think Apple’s stock has traditionally been undervalued.” “We see that they have achieved their goal of doubling service revenue very early, and there seems to be room for them to operate,” said Rene Richie, a senior technology analyst < / P > < p > any bundled service will bring a steady stream of new revenue to apple, which may come when Apple launches its first 5g iPhone. Combining these two growth drivers, Wall Street can’t wait to raise its earnings expectations for apple in the next few years. In theory, the tech giant’s share price will rise as profits rise. < / P > < p > “we believe this is a major move for apple, which is expected to increase its service revenue by 5% in 2021. In our view, it’s a genius for cook to make further profits through bundling, “said Dan ives, a technology analyst at wedbush.