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what incentives do companies have to be "long term focused" in a market environment that has become highly frothy and speculative due to central bankers? when
by tempsy 6y ago
what incentives do companies have to be "long term focused" in a market environment that has become highly frothy and speculative due to central bankers?
when investors will buy anything that whiffs of growth and executives can raise debt for cheap and raise secondaries easily no one on either side is exactly clamoring for a "long term" focused exchange right now.
- eries 6y agoNo one? At least a few people are clamoring for it, surely? There are some investors and companies that tune out the noise and try to make lasting change, making a dent in the universe, that kind of thing. I think they could use financial infrastructure to support their ambitions. Seems pretty simple to me
- tempsy 6y agoclearly you’re biased, but hard to imagine the actions of the Federal Reserve that has pumped liquidity into the economy and cut rates to 0 that many predict will last for 5+ years make an exchange that is focused on “long term” less interesting to both executives and investors. we live in a market when there’s a dozen SPACs listed every week and a company like Nikola that doesn’t even have a functioning product has a valuation of $20B. liquidity and support from central bankers have naturally made investors more patient and willing to ignore short term road bumps.