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This is something that has been bothering me. Doesn't it seem like stock prices are getting out of whack?
by Skunkleton 9y ago
This is something that has been bothering me. Doesn't it seem like stock prices are getting out of whack?
- matthewbauer 9y agoYes although this mostly just applies to consumer tech companies.
- ianai 9y agoNearly all companies I’ve researched on the exchanges have historical highs going back a couple years. This is across multiple industries (tech, utilities, real estate, grocers). It’s a significant trend. As for whether it’s substantive (ie not likely to correct), well, I’ve seen many economists suggesting a correction “soon” for years. The more worrying thing is the consumer reports I’ve read. They said people aren’t saving money in 401ks, nor even savings accounts. This could indicate high confidence in the market. Or, it could indicate a lack of income to save. I’ve read reports indicating the later and not the former - specifically reports of people working multiple jobs to afford the basics. If that’s the case then luxury goods and services should be commensurately lower valued. But they’re they are not.
- isostatic 9y agoWith a decade of low interest rates, people have been investing in the stock market hoping for a better return on their capital. At some point all bubbles burst.
- mbesto 9y agoThere aren't enough IPOs and companies to invest into, so the public markets are chasing anything they can get their hands on. Do these companies have value? Absolutely. Is the demand arbitrarily high because there's supply? Absolutely.
- mbesto 9y agoMeant to say "because there's limited supply"
- Skunkleton 9y agoYeah, that makes sense I suppose. I just don't see the growth path for Spotify. Yeah, they have an excellent music service, but whats next? Edit: and I as about growth, because I don't see how Spotify is currently worth 30B.
- Skunkleton 9y ago*ask