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OneDigital Retirement + Wealth CIO Saumen Chattopadhyay Featured in Business Insider Discussing the Frothy Market

Froth in a market can be extremely dangerous and eventually lead the economy to burst.

A “frothy market” is when stock prices are artificially high based on market frenzy and not the fundaments of investing. OneDigital Retirement + Wealth CIO Saumen Chattopadhyay explains that there are many reasons for market froth. He explains that among all the factors, the most common cause of market froth “is an unjustifiable level of exuberance about an asset.” In the Business Insider article titled, “Someone Just Said They’re Worried the Market Might Be a Bit ‘Frothy.’ What Does That Mean?" Saumen notes that low interest rates, stimulus programs, or marketplace hype are all reasons for a frothy market.

Usually, one or more of these factors are at play and combine with investors who either do not (or cannot) miss out on the upward returns and/or inexperienced investors who do not fully recognize the intrinsic value of a given investment asset.
— Saumen Chattopadhyay, Chief Investment Officer, OneDigital Retirement + Wealth

Read the Business Insider article here.

Want to hear more from Saumen Chattopadhyay? Check out his recent post: A Bold Goal to Provide Access to Financial Advice to Millions.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.