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WSJ are pushing it there. Depends what you mean by dominance. The US market is propped up on hyped big tech investments with little chance of ROI for shareholde

WSJ are pushing it there. Depends what you mean by dominance. The US market is propped up on hyped big tech investments with little chance of ROI for shareholders other than inflating the valuations. PE ratio is quite frankly bananas too. At some point it’s going to be absolute carnage. Private investment companies have already seen the end game and from direct observation have been pushing the hype to drive volume so they can shift their holdings on to the bagholders. Good luck. It’s not a stable market. It’s fucked.

dlcarrier 1y ago
Multiple branches of the US government regularly go after business for having too high of a profit margin. I really don't blame businesses for holding onto their cash, instead of making stock disbursments, when that's exactly what they are incentivized to do.
- devoutsalsa 1y ago
  I really wish they’d ban stock buybacks. When executives get paid in stock options, they want the stock price as high as possible. The easiest way? Buy back shares to make the remaining ones worth more. But when companies do this while their stock is overpriced, they’re wasting shareholder money on expensive shares. Executives pad their own pockets while shareholders get screwed. I’d rather see companies pay better dividends or keep the cash. At least then shareholders actually benefit instead of just watching executives get richer.
  - dlcarrier 1y ago
    That happens because of a Clinton administration regulation that was meant to reduce executive pay, but instead incentivized raising it: https://www.propublica.org/article/the-executive-pay-cap-that-backfired https://www.propublica.org/article/the-executive-pay-cap-tha...
motorest 1y ago
I don't know who is downvoting this post. The fact that companies such as Tesla as being featured as meme stocks for years, with valuations that bear no relationship to performance let alone fundamentais, is a clear indicator that the house of cards can tip at any moment.
- thrown-0825 1y ago
  The foundation of that house of cards is composed of nuclear weapons, stealth bombers, nuclear subs, and aircraft carriers.
sunshine-o 1y ago
Yes go most banks in Europe and ask to invest anywhere from 1000 to 1M euros they will sell you mainly two things: European govs debt and bluship US tech stocks. It might be wrapped in all kind product but it is often most of it (MS, Apple, Google, Nvidia, etc.). I once asked what could be the alternative they literally couldn't answer me. Virtually every EU citizen with a bit of money has part of their savings invested in the same 5 US big tech companies. And I am sure it is the same in many parts of the world. We are very very far from initial role of a bank and you might wonder why Europe has its own banking system in the end. It also explains why the price of those stocks are so high.
- crinkly 1y ago
  That’s idiotic really. I mean I’m not sure why you’d go to a European bank for investment advice other than “bank do money, ug”. There’s a whole advisory market out there which gives you better options based on your attitude to risk profile and goals. Not the usual put it all in a TSLA/NVDA/MSFT ETF and to the moon shit. I made more out of the tech market in the last 5 years than I would have in it by having sensible advice and a half decent financial model.
  - sunshine-o 1y ago
    The older generations (Boomers, Gen X) who have most of the money still invest through well known banks and often get advise from the local branch. Their money will either disappear one day or stay there until their death.
    - crinkly 1y ago
      Looks like we found our bag holders. Gen X here btw. Some of my age-peers have low financial sense so that figures.
      - sunshine-o 1y ago
        My guess is as older generations die out and their children (traumatized by 2008) inherit their money, we are gonna see the most incredible migration away from the financial institutions we know. It has already started. I am sure most gen Z who inherited something from their grand parents who passed away in the last 5 years, invested some in crypto (after putting a roof over their head hopefully). It is visceral for that generation, for better or worst they do not understand or trust our current financial system. So now it is just a race between the boomers dying out and the collapse.
thrown-0825 1y ago
The US market is propped up by the most powerful military that has ever existed, and its exists purely to maintain the US hegemony. Tech sector dominance/hype is a nice perk.

dlcarrier 1y ago

Multiple branches of the US government regularly go after business for having too high of a profit margin. I really don't blame businesses for holding onto their cash, instead of making stock disbursments, when that's exactly what they are incentivized to do.

devoutsalsa 1y ago
I really wish they’d ban stock buybacks. When executives get paid in stock options, they want the stock price as high as possible. The easiest way? Buy back shares to make the remaining ones worth more. But when companies do this while their stock is overpriced, they’re wasting shareholder money on expensive shares. Executives pad their own pockets while shareholders get screwed. I’d rather see companies pay better dividends or keep the cash. At least then shareholders actually benefit instead of just watching executives get richer.
- dlcarrier 1y ago
  That happens because of a Clinton administration regulation that was meant to reduce executive pay, but instead incentivized raising it: https://www.propublica.org/article/the-executive-pay-cap-that-backfired https://www.propublica.org/article/the-executive-pay-cap-tha...

motorest 1y ago

I don't know who is downvoting this post. The fact that companies such as Tesla as being featured as meme stocks for years, with valuations that bear no relationship to performance let alone fundamentais, is a clear indicator that the house of cards can tip at any moment.

thrown-0825 1y ago
The foundation of that house of cards is composed of nuclear weapons, stealth bombers, nuclear subs, and aircraft carriers.

sunshine-o 1y ago

Yes go most banks in Europe and ask to invest anywhere from 1000 to 1M euros they will sell you mainly two things: European govs debt and bluship US tech stocks. It might be wrapped in all kind product but it is often most of it (MS, Apple, Google, Nvidia, etc.). I once asked what could be the alternative they literally couldn't answer me. Virtually every EU citizen with a bit of money has part of their savings invested in the same 5 US big tech companies. And I am sure it is the same in many parts of the world. We are very very far from initial role of a bank and you might wonder why Europe has its own banking system in the end. It also explains why the price of those stocks are so high.

crinkly 1y ago
That’s idiotic really. I mean I’m not sure why you’d go to a European bank for investment advice other than “bank do money, ug”. There’s a whole advisory market out there which gives you better options based on your attitude to risk profile and goals. Not the usual put it all in a TSLA/NVDA/MSFT ETF and to the moon shit. I made more out of the tech market in the last 5 years than I would have in it by having sensible advice and a half decent financial model.
- sunshine-o 1y ago
  The older generations (Boomers, Gen X) who have most of the money still invest through well known banks and often get advise from the local branch. Their money will either disappear one day or stay there until their death.
  - crinkly 1y ago
    Looks like we found our bag holders. Gen X here btw. Some of my age-peers have low financial sense so that figures.
    - sunshine-o 1y ago
      My guess is as older generations die out and their children (traumatized by 2008) inherit their money, we are gonna see the most incredible migration away from the financial institutions we know. It has already started. I am sure most gen Z who inherited something from their grand parents who passed away in the last 5 years, invested some in crypto (after putting a roof over their head hopefully). It is visceral for that generation, for better or worst they do not understand or trust our current financial system. So now it is just a race between the boomers dying out and the collapse.

thrown-0825 1y ago

The US market is propped up by the most powerful military that has ever existed, and its exists purely to maintain the US hegemony. Tech sector dominance/hype is a nice perk.