The excessive valuation of Technology stocks conflicts with the notion of Technology being a disruptor…
Here is why: extremely high valuation of a Technology company assumes that the company would keep growing tremendously and would dominate for really, really, really long, long, long time… Hmmm…. That means it leaves no room to let in any additional disruptors into the economic ecosystem, including its own business. I.e. simplistically speaking when Big ...
When Bitcoin plunges more than 10%…
When Bitcoin plunges more than 10% on Thursday, don’t even bother looking for a reason…. It had no business being so high to begin with! Buying begets more buying and selling begets an AWFUL lot of selling …. ...
Why do we extoll as true entrepreneurs Elon Musk and Bezos way over Sergey Brin and Mark Zuckerberg?
Not because that either TSLA or AMZN are more profitable! No, to the contrary…. Look at the Net Income for 2020 for all these companies FB and GOOG still are way, way more profitable than either TSLA or AMZN (Net profits for 2020 or TSLA $0.5B, AMZN $13B FB $21B, GOOG $31B) We extol the virtues of Musk and ...
Big corporations are horrible at innovation
Jamie Dimon says JPMorgan Chase should absolutely be scared about fintech threat. The highly respected CEO mentioned that competition will be particularly tight in the world of payments. Why would Jamie single out payments, if other areas of the bank services are under the attack too? Is it because JP Morgan’s Chase paymentTech overcharges clients ...
Bitcoin acts as a leading indicator for other cryptocoins
Without a doubt, Bitcoin acts as a leading indicator for other cryptocoins, and many other asset classes globally by being a good proxy for the risk appetite. With that in mind, given the historical ratio of Bitcoin/Ethereum, ETH has at least 2-3x upside now..; Specifically, at historical highs ETH traded at ~10x the price of ...
How future returns for two polar sectors of Covid lockdowns – Tech vs. Energy?
Mega profits of Zooms, Amazons and Wayfairs attract competition in masse and ruin future profits While lack of any new oil production (let alone deep sea drilling) creates lack of supply, and, coupled with even modest recovery in demand, can produce huge profits for the Energy space… Mean reversion manifests itself through capital re-allocation…. ...