Markets are fretting. Up one day and down the next? Do they believe in the dire fundamentals or inflation threat, or keep buying Central Banks juicing the markets? Never mind; hot disruptive tech stocks can only ever go up… But where do they eventually lead us? I suspect Tech will eventually kill us all…
The great rotation from tech stocks into value stocks has been the dominant market theme this year. Tech stocks still have their moments – and there are clearly new technologies with the potential to completely change and improve the world. However, the glamour that surrounds tech stocks is also a danger, leading us down wrong and wasteful paths.. Who else remembers Betamax?
We had a slew of spectacular Big Tech results this week, but has the time come to regulate them more closely to avoid increasingly monopolistic behaviour, and to protect the population from the pernicious effect of the manipulation of big data? It’s as much an argument about the role of the state as it is about the success of companies. There will be winners and losers.
Q1 was “interesting”. More financial madness in 3 months than I’ve seen in 35 years, but at least it was fun. How much more sober and boring might the market become? Deliveroo’s botched IPO suggests Investors ain’t as stupid as we think.
There is an old market rule – don’t fight the Fed. Jay Powell has been crystal clear: rates are staying lower for longer. But the ongoing sell-off in Treasuries, and rising global bond yields, paints an interesting story of a market unconvinced rates can be held down
Two linked themes this morning – what about the little people? Most mornings I write about market macro and micro themes, but occasionally things happen that may just be a turning point. Two things to think about today: Big Tech and Retail Investors.