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How does "valuations are all over the map" jive with "there is no bubble in tech"? If a lot of tech companies are being systematically overvalued, isn't that th
by danenania 16y ago
How does "valuations are all over the map" jive with "there is no bubble in tech"? If a lot of tech companies are being systematically overvalued, isn't that the definition of a tech bubble?
It's also no secret that monetary policy is as loose as ever, so it doesn't take a lot of dot-connecting to see which forces are driving these valuations, especially with Fed bedfellows like Goldman are getting involved. Would people be so willing to throw their cash behind 10-100x PE companies if they had to obtain that cash at market rates and without implicit government backstopping of losses? I'm sure no one involved in tech investing wants to recognize this situation for what it is, but come on now, anyone can see that something's fishy.
- kenjackson 16y agoI think a tech bubble generally means that nearly everyone is overvalued.
- danenania 16y agoA sector being overvalued as a whole isn't enough? Perhaps the bubble is really focused on particular segments within what is generally known as 'tech', but it still seems like the most appropriate label.
- kenjackson 16y agoI didn't realize they said the sector was overvalued as a whole. That is sufficient. I just caught the part that valuations were all over the map, which to me means that some companies are overvalued and others undervalued, but no significant trend one way or the other.
- deleted 16y ago[deleted]