Tech is the spearhead of the Everything Bubble.
| Dear Reader, Investors were drunk on tech stocks before the pandemic. Then lockdowns happened, and Bezos and the rest had all their Christmases come at once… Imprisoned customers with nothing but tech to turn to. And bored investors — with stimulus cheques to spend…steadfast in the knowledge stock markets don’t crash anymore — all looking for the next ‘hot thing’ to buy. And buy they did… The FAANGs — Facebook, Amazon, Apple, Netflix, and Google — are now the greatest concentration of stock market wealth in history. Take a look: The blue line is the valuation of those five stocks. It’s swamped the other 495 on the S&P 500. See the green line? That’s their ACTUAL REVENUE compared to those 495. So small you can barely see it. Monster valuations…tiny revenue. A pile on towards more and more growth…when the fundamentals don’t back it up…is human nature at this stage of the cycle. It’s what we do. For this reason, tech is the spearhead of the Everything Bubble. And the ‘smart money’ has started to act, as you’ll see if you click below: The Big Short against Big Tech. Regards, Vern Gowdie, Editor, The Rum Rebellion |
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