Great piece as always! I'm starting to wonder if there's been a material change in valuations where they will be higher than we've been accustomed to. Kind of like inflation staying higher for longer. As the government debases our currency more rapidly than ever it would make sense than valuations of companies run above average compared to the past. These Big Tech companies also have a lot of cash on their balance sheets and they generate a lot of revenue, so the valuations aren't as frothy as in the dot com bubble when those stocks were dogcrap.
Hey thanks Christos! Ya, some good points. Probably a lot of stuff behind what's going on. Like, more money in the system. More 'efficient' markets brought to you by quant funds. Cheaper and more liquid hedging options. Inflation. A much higher composition of high growth companies holding a disproportionate percent of the market. And just a general positive outlook on the world.
I remember when I graduated in the GFC, the vibe was that any day now the world could far apart but right now it doesn't seem like anyone has a doomsday scenario in their head. A positive 5yr outlook does wonders for scaring people away from waiting for a cheaper entry point.
Ridiculously so ,,, but the money needs to go somewhere that governments are giving away
Great piece as always! I'm starting to wonder if there's been a material change in valuations where they will be higher than we've been accustomed to. Kind of like inflation staying higher for longer. As the government debases our currency more rapidly than ever it would make sense than valuations of companies run above average compared to the past. These Big Tech companies also have a lot of cash on their balance sheets and they generate a lot of revenue, so the valuations aren't as frothy as in the dot com bubble when those stocks were dogcrap.
Hey thanks Christos! Ya, some good points. Probably a lot of stuff behind what's going on. Like, more money in the system. More 'efficient' markets brought to you by quant funds. Cheaper and more liquid hedging options. Inflation. A much higher composition of high growth companies holding a disproportionate percent of the market. And just a general positive outlook on the world.
I remember when I graduated in the GFC, the vibe was that any day now the world could far apart but right now it doesn't seem like anyone has a doomsday scenario in their head. A positive 5yr outlook does wonders for scaring people away from waiting for a cheaper entry point.
I am starting to get addicted to your posts. Great charts and insights. Thanks!