Nvidia and Telsa trade on hopes and expectations, FOMO and huge PE multiples. They are very different investment propositions but reflect the bubble market. Maybe it’s time to revert to dull, boring, predictable returns in fixed income secured by real assets?
For years I’ve found reasons to avoid certain big tech stocks – but the market has largely been right. I might be clever, but the market is smarter. What’s the future likely to look like?
The debt ceiling crisis has lifted a cloud from markets, but we’re still looking for resolution on inflation, geopolitics and a host of other issues. Maybe the real issues are about valuations – which remain over-extraordinary.
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Microsoft would rather do business in Europe than the UK when it comes to global gaming. Name me a famous European game? BIG TECH is turning stale. Bring on the next new, new thing.
Big Tech is so yesterday. Prices peaked last year, but there are limited reasons to expect they will ever become so dominant again. They are too big, under the regulatory cosh, and increasingly under competitive pressure. They are heading the same way as the dinosaurs.
Markets love drama… from the next corupto-coin exchange to collapse, rising interest rate threats, and riots in China in the face of a Covid meltdown. But drama and reality seldom coincide – events are more prosaic!
Big Tech “growth” stocks suffered a price-check this week as economic reality bit, but they face much more pressure than just short-term cost and sales problems. Long-Term, new businesses and opportunities are evolving to eat their lunch, and leave them behind.
Stock markets feel like they are running out of momentum – but that should not lead to fears of a no-see-um crash, rather a more fundamental assessment of the reasons why? In the UK, Plan B – National Economic Suicide by winter Lockdowns – looks on the cards. And, despite all the wonders of Big Tech and promises about how much better it makes our lives – most of it is pretty pants.
Highlight event today is Apple launching new bright-shiny-things. Apple is unique – it has a monopoly of being Apple! For how long?
