The return of the stock-market bubble

The speculative bubble that burst in the first half of 2022 appears to be reinflating. Over the past fortnight or so, the share prices of the likes of US cinema chain AMC and video game retailer GameStop have soared, while the Reddit stock army is once again charging recklessly into meme stocks.

Cryptocurrencies look to be back from the dead, and mega-cap companies are racking up billions of dollars in market capitalisation with each passing day.

Even after falling by as much as 40 per cent last Friday (Aug 19), shares of American home-goods chain Bed Bath & Beyond have still more than doubled in August, despite some signs that the company is having liquidity issues.