People still printing paperless offices. They just shred it. But clearly won’t be as much.
The term I like to use is “paper-light office”.
Nasdaq 100 futures a few points off its Feb 2020 all time high as the country burns in social unrest, trade relations with China at a low point and 40m + have lost their jobs, along with what will be a record GDP contraction. There is something very wrong with the current monetary system.
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How much of this is propped up by the top five though?
Iirc, their p/e are way above old skool levels.
It’s all FAANG but the madness is propped up by the trillion dollar printing press and near unlimited repo facilities with the Fed.
The fed own fcuk all us equities though, as opposed to the bank of Japan for instance.
I presume that the end result of all this is inflation, though the five year us forecast is only 0.8%
I ought to add that I’m mostly regurgitating what ed was telling me out on the run this morning. It’s fascinating tbh.
Apple, Microsoft, Facebook, Amazon and Google make up nearly 50% of the Nasdaq. All 5 companies are now so powerful that whatever happens they’ll emerge the other side unscathed.
S&P 500 probably a fairer reflection, though again those bigger ones plus a few other non tech giants make up a huge chunk. That’s still down 10% from its highs.
Equities overpriced for me, in some cases massively so. But investors basically have nowhere else to put their money
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They don’t need to own the equities to prop it up. The take in billions of dollars of all sorts of bonds as collateral and provide liquidity instead which is then invested in equities. It is literally a fed/liquidity driven rally. P/es at all time highs, gdp fucked, 2020 earnings contraction. It’s basically a transfer of wealth.
Yes, the end result is inflation although the price of equities is already a reflection of inflation/qe. Asset prices will continue to rise disproportionately to real economic activity. It will end up in real goods and services and not sure what the Fed can do then.
Thanks for the vidpop
I haven’t even looked at the stock indices in the last three months. Absolutely no point.
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Jet blue up 52 per cent in a week.
American Airlines up 82 per cent
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Hertz up 500 per cent in a week
Some money being made on the stock markets
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Pension funds in good position to fund under 30s mortgage deposits.
Tesla closed at $949 last night. An all time high. Elon Elon Elon.
Tesla is now the most valuable automaker in the world. Shares have surpassed $1,000 and overall market cap now exceeds Toyota.
ELON ELON ELON
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I saw a documentary on Tesla last week and their manufacturing process. Fascinating.
The second wave of the equity market carnage of 2020 has begun.
Market is completely irrational at the moment. Even more so than usual
The sad thing is most of the rally from late March onward has been retail investors, who are about to get their asses handed to them.
The problem persists that there is no where else to put your money. But how can the market be worth more than before covid (when it was already way over valued IMO)
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