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Vision Fund is probably pretty dead. I can't imagine anyone giving them money in the future.
They have substantial investments in ARM and NVidia which seem more reasonable...
is this a sign of bubble popping? although I am not sure can this spread outside of Saudis and Softbank.
It's more like an inefficiency within the VC system that has been exploited and lots of money wasted, and hopefully lessons are learned. I don't think it says anything much at all about the fundamentals of the broader industry.
Vision Fund is probably pretty dead. I can't imagine anyone giving them money in the future.
Vision Fund has an investment horizon in the decades. So the idea that it is dead is just ignorant. And there is plenty of capital and not many decent investment vehicles so expect Vision Fund 2 to do just fine.
is this a sign of bubble popping? although I am not sure can this spread outside of Saudis and Softbank.
That cheap cash then finds it's way into assets like stocks and housing with that cheap money putting upward pressure on those assets.
In that same climate we have seen a decade long stagnation in wages, next to zero inflation and we are now entering a stagnated and slowing global economy.
With those contradictory growth signals, the real question is how long will that cheap keep flowing, as it is the only stopping those artificial asset bubbles from popping.
Manipulating pre-IPO valuations as aggressively as they did was just insane.
is this a sign of bubble popping? although I am not sure can this spread outside of Saudis and Softbank.
The last decade has seen global monetary policy create a situation where cash is very cheap (i.e. many central banks are now offering close to zero interest rates and some have actually seen negative interest rates). That cheap cash then finds it's way into assets like stocks and housing with that cheap money putting upward pressure on those assets. In that same climate we have seen a decade long stagnation in wages,…
is this a sign of bubble popping? although I am not sure can this spread outside of Saudis and Softbank.
no. next year. close to the US elections.
Earlier quoted context omitted.
The last decade has seen global monetary policy create a situation where cash is very cheap (i.e. many central banks are now offering close to zero interest rates and some have actually seen negative interest rates). That cheap cash then finds it's way into assets like stocks and housing with that cheap money putting upward pressure on those assets. In that same climate we have seen a decade long stagnation in wages,…
Add to that the global "QE" programs which are driving up equities even higher. This whole system seems to act synergistically now, perpetually driving stocks higher and higher. Will it collapse altogether (and when)? Who knows
So I don't think the questions is will it collapse but instead when will it collapse?
It seems pretty clear that Softbank were badly misvaluing We and Uber. The second they hit the public markets suddenly Softbank could no longer sustain their paper valuations which is causing this loss. It's kind of funny that Softbank can mark its own homework on this - they buy the company and then because the investment isn't liquid they can basically choose any valuation they want for the companies they own. It'l…