4 ms·

This feels like the japanification of the whole western world plus China. I don't even follow the valuations of the stock markets, I've been told they are high

by raducu 7y ago

This feels like the japanification of the whole western world plus China. I don't even follow the valuations of the stock markets, I've been told they are high, but for tech I'm sure they are nowhere near those of 1998, so I don't think that tech will burst the bubble of everything. I am however sure the party cannot go on for much longer, the negative interest rates and permanent increase of balance sheets of the FED and other central banks will either cause a stockmarket prolongued downturn, or fuck the whole financial system so profoundly that in 20 years time we won't be able to recognise it, nor be able to call our economies market-based or capitalistic.

toomuchtodo 7y ago
What no one seems to be able to explain is why the rest of the world won't turn into Japan. Stagflation and QE by any means necessary (Bank of Japan propping up the Nikkei [1]). Unfortunately, interests are misaligned and it's unlikely we'll see true price discovery in assets instead of central bank "help" artificially inflating values. [1] https://asia.nikkei.com/Business/Markets/Bank-of-Japan-to-be-top-shareholder-of-Japan-stocks https://asia.nikkei.com/Business/Markets/Bank-of-Japan-to-be... (Bank of Japan to be top shareholder of Japan stocks)
asdff 7y ago
Valuations are improbably high for a lot of companies. Look at the price for netflix 5 years ago. $50 stock. Today, it's $300 and change. In the same time range, AMD went from a $2 stock to close to $40 these days. You hardly see that anywhere else in the market, like you'd never see Ford go up 2000% in 5 years without people screaming the sky is falling in every economic publication, but here we are with these tech evaluations. It's almost as if smart money dictating these headline narratives doesn't want retail to stop buying one off shares of FAANGs, and that is worrysome.

by raducu 7y ago

toomuchtodo 7y ago

What no one seems to be able to explain is why the rest of the world won't turn into Japan. Stagflation and QE by any means necessary (Bank of Japan propping up the Nikkei [1]). Unfortunately, interests are misaligned and it's unlikely we'll see true price discovery in assets instead of central bank "help" artificially inflating values. [1] https://asia.nikkei.com/Business/Markets/Bank-of-Japan-to-be-top-shareholder-of-Japan-stocks https://asia.nikkei.com/Business/Markets/Bank-of-Japan-to-be... (Bank of Japan to be top shareholder of Japan stocks)

asdff 7y ago

Valuations are improbably high for a lot of companies. Look at the price for netflix 5 years ago. $50 stock. Today, it's $300 and change. In the same time range, AMD went from a $2 stock to close to $40 these days. You hardly see that anywhere else in the market, like you'd never see Ford go up 2000% in 5 years without people screaming the sky is falling in every economic publication, but here we are with these tech evaluations. It's almost as if smart money dictating these headline narratives doesn't want retail to stop buying one off shares of FAANGs, and that is worrysome.