What can David Attenborough’s Green Planet teach us about Tech Stocks, why they are overvalued, and why rising rates suggest the game is over?
Lots of small signals, rising rates, a tech wobble, Covid vs freedom, China’s Covid crisis and the anniversary of the Capitol riot make for a rich stew of confusion in today’s markets!
“The future may dimly be perceived through the veil of the past”, sounds like bad poetry, but has a point. The confusions and conflabulations that characterised 2021 will likely set the tone for what’s coming – what were the key themes of 2021? Best to understand them before trying to fathom what comes next.
How much safer is the state global diplomacy today than in 1914? And, how the demise of GE illustrates the inevitabilities of corporate evolution, and the threat of mispriced capital.
One simply can’t ignore a bleeping email. So much for being on holiday, but this week I will simply observe and repeat: please don’t break the market while I’m out!
The inflation/deflation debate continues to roll thin summer markets, but the bigger issues are probably elsewhere. What’s happening to markets as they become increasingly consensus led, and focused more on compliance than sentiment?
Central Banks are playing the “lower for longer” interest rate card to reassure markets on growth. There are always consequences of such actions – ranging from bubbles, delusion and fraud. Eventually consequences trigger change, and reassessment – which is driving the rotation from Hope as a Strategy Tech into Fundamental stocks – Autos are a good example.
Blain’s Morning Porridge – 5 Feb 2021: Till the pips squeak “Here’s to the founding fathers – slave-owning British Citizens…
Blain’s Morning Porridge – March 24th 2020 “All animals are equal, but some animals are more equal than others..” Is…