Tech bubbles are bursting all over the place

Re:Tech bubbles are bursting all over the place by stjohnswarts on Friday May 13, 2022 @02:32PM (#31371034)

The market is having issues now not because of inflation being kept low but because people panic when everything isn't going smoothly. The supply chain and WW3 have investors scared, and now they're panicking and leaving the markets and taking their profits with them. Others panick and get what cash they can. Some will buy low and it'll level off soon probably. I think this is more of a pull back than a recession. Generally the economy is in good shape it's just the speculators are bailing from the market.

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Re:Tech bubbles are bursting all over the place by joe_the_user on Friday May 13, 2022 @05:07PM (#31372543)

By effectively guaranteeing the market, the Fed made stock and bond markets more "money like" and so it didn't even have to overtly print money to create a money -printing-like effect ("the wealth effect") even though they also did print money to prove they were serious. So effectively we've had inflation for a while but most of it was inflation of asset values.

If the Fed talks the market down and people sell, it will have destroyed money without other harsh measures. That doesn't mean there won't be more pain other ways also.

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Re:Tech bubbles are bursting all over the place by adam_arthur on Friday May 13, 2022 @07:05PM (#31373459)

It's almost entirely because of inflation. Persistent inflation raises the discount rate (10y treasury yield), and devalues all other assets.

Why would you buy a 100x PE company (1% yield) when you can get 3% guaranteed today? Even growing at double digit rates, how many years just to match that return? Except many tech companies were 100x PS not even 100x PE. DDOG and NET are two examples.

If the 10y runs to even 3.5-4%, and stays there, we're likely to see a 40-50% haircut in markets.

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Re:Tech bubbles are bursting all over the place by Foobar8568 on Friday May 13, 2022 @03:06PM (#31371395)

Typically one can take a look at HOOD 13F, institutionals are enjoying free meals while retails are bleeding money by getting out.

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