Can’t wait for the Q2 earnings season to start (still 6 weeks away!)
- Big Tech $0.5-2TR market capitalization assumes endless growth and leaves no place for error.
- Big Tech valuations assume that these companies would never be unseated by the next generation of disruptors. History would disagree with that.
- On the disruption side, hundreds of VCs and SPACs are generously funding any promising idea to unseat Big Tech.
- Big Tech is over-researched by brokers and buy-side. Can you name anyone who isn’t aware that AMZN is growing?
- Everyone owns Big Tech. So boring!
- Being Covid lockdowns beneficiaries Big Tech would face very, very tough sales comparisons starting in Q2:2021.
- Big Tech High-multiple stocks drop during periods of inflation or cyclical upswings.
- Big Tech is targeted by regulators in the US, Europe and China.
- Big Tech is losing the best employees to new startups.
- Big Tech is targeted by Unions (Karl Marx would be proud!). Unionization adds costs and reduces operational flexibility.
- Big Tech would be taxed globally at the higher rate – the recent minimum corporate tax of 15%+ is a big deal. Regulators were immediately asked if that would apply to big technology companies….
Beyond these reasons, you have nothing to worry about!
See how TenViz tools spot and plot money outflows from Facebook into pro-cyclical/pro-inflationary assets.Big Tech $0.5-2TR market capitalization assumes endless growth and leaves no place for error.
Energy stocks chart is breaking out and has completed this beautiful “cup and a handle”t technical formation suggesting meaningful upside.
Vitalik Buterin (the founder of Etherium, which serves as a foundation for most blockchain), has donated $1.5B for the Covid relief efforts in India.
It is totally cool for the Fed Chairman Powell still not “think about thinking” about raising rates…
When we hear about companies “beating” earnings expectations, pls keep in mind that these expectations do NOT represent true market expectations.
Technology stocks dynamics starts deviating from the moves in Interest Rates.
The reopening trade reads very loudly from the earnings commentary, and it is loudly screaming INFLATION:
What makes this cycle distinctly different from other cycles is that we are starting off with such a high valuation across most industries and sectors…