Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

U.S. tech stocks are now worth more than the entire European stock market

cnbc.com

Post reply on HN
Print view View original

11–20 of 100 posts

Re: U.S. tech stocks are now worth more than the entire European stock market

#11

Post by TristanDaCunha »

Guzba wrote: post #4

The growth in tech stocks has been pretty insane imo. It's so easy to be afraid though and call this another 2000, but we really don't know what the future holds. I wish Europe had it's own set of exciting tech companies. That would be amazing. As a human living on this planet, the more things available to me, the better. Unfortunately, Europe doesn't seem to do much anymore. Google "European growth stocks". I want t…

> Google "European growth stocks".

This short sentence contains irony.

Re: U.S. tech stocks are now worth more than the entire European stock market

#12

Post by mamon »

ng12 wrote: post #5
baconandeggs wrote: post #3

U.S. tech stocks are now priced higher than the entire European stock market.

And I can use that price to turn my stocks into real, hard cash. It's not like it's funny money.

You can, but if everyone tried that at once then the price would fall, and most people wouldn't get as much money as they think they now have. So in that sense company valuations are not real. We might pretend that Tesla is worth 2100 USD per share until someone shouts: "Emperor is naked"

Re: U.S. tech stocks are now worth more than the entire European stock market

#13

Post by dontworry99 »

ng12 wrote: post #5
baconandeggs wrote: post #3

U.S. tech stocks are now priced higher than the entire European stock market.

And I can use that price to turn my stocks into real, hard cash. It's not like it's funny money.

For now. The government is looking to let VCs use 401k’s as Monopoly money.

You might go to liquidate only to find that YOUR pension...er investment was lost without you knowing it.

https://www.salon.com/2020/06/16/trump-labor-department-quie...

“You accepted the rules by buying in. Can’t say you weren’t aware the market is risky!”

That’s what they keep telling grandparents when their pensions were flushed down the drain.

Let’s keep trusting political grifters of our agency to do right by it despite historical evidence though.

Re: U.S. tech stocks are now worth more than the entire European stock market

#14

Post by spideymans »

baconandeggs wrote: post #7
Guzba wrote: post #4

The growth in tech stocks has been pretty insane imo. It's so easy to be afraid though and call this another 2000, but we really don't know what the future holds. I wish Europe had it's own set of exciting tech companies. That would be amazing. As a human living on this planet, the more things available to me, the better. Unfortunately, Europe doesn't seem to do much anymore. Google "European growth stocks". I want t…

The "growth" in tech has been entirely driven by monetary policy. Google or Facebook or Apple or Netflix or Amazon have done nothing special than what they've been doing for the last 5 years. I wish we were getting insane tech out of this bull run but the truth is there's no "innovation" behind it and their paper is just being used as a shield by investors which is why their stocks keep going up.

> The "growth" in tech has been entirely driven by monetary policy.

For the uninformed, what monetary policy exactly is driving this growth?

Re: U.S. tech stocks are now worth more than the entire European stock market

#15

Post by hpoe »

I would argue tech isn't high because of the value of it but instead it is a combination of being seen as a safer investment while also having potential for growth that outstrips inflation.

If there is a company that is only growing slightly year over year, then due to the loose money policies of the fed, they won't be able to make your real money adjusted for inflation.

Bit another issue may be that as Matt Levine likes to point out private equity markets are the new public markets. So the question is what will be the next step in financial engineering?

Re: U.S. tech stocks are now worth more than the entire European stock market

#16

Post by hpoe »

spideymans wrote: post #14
baconandeggs wrote: post #7

Earlier quoted context omitted.

The "growth" in tech has been entirely driven by monetary policy. Google or Facebook or Apple or Netflix or Amazon have done nothing special than what they've been doing for the last 5 years. I wish we were getting insane tech out of this bull run but the truth is there's no "innovation" behind it and their paper is just being used as a shield by investors which is why their stocks keep going up.

> The "growth" in tech has been entirely driven by monetary policy. For the uninformed, what monetary policy exactly is driving this growth?

Not OP but my guess is the low interest rates and the high amount of cash the Fed has been handing out.

Re: U.S. tech stocks are now worth more than the entire European stock market

#17

Post by [deleted] »

baconandeggs wrote: post #7
Guzba wrote: post #4

The growth in tech stocks has been pretty insane imo. It's so easy to be afraid though and call this another 2000, but we really don't know what the future holds. I wish Europe had it's own set of exciting tech companies. That would be amazing. As a human living on this planet, the more things available to me, the better. Unfortunately, Europe doesn't seem to do much anymore. Google "European growth stocks". I want t…

The "growth" in tech has been entirely driven by monetary policy. Google or Facebook or Apple or Netflix or Amazon have done nothing special than what they've been doing for the last 5 years. I wish we were getting insane tech out of this bull run but the truth is there's no "innovation" behind it and their paper is just being used as a shield by investors which is why their stocks keep going up.

[deleted]

Re: U.S. tech stocks are now worth more than the entire European stock market

#18

Post by refurb »

baconandeggs wrote: post #7
Guzba wrote: post #4

The growth in tech stocks has been pretty insane imo. It's so easy to be afraid though and call this another 2000, but we really don't know what the future holds. I wish Europe had it's own set of exciting tech companies. That would be amazing. As a human living on this planet, the more things available to me, the better. Unfortunately, Europe doesn't seem to do much anymore. Google "European growth stocks". I want t…

The "growth" in tech has been entirely driven by monetary policy. Google or Facebook or Apple or Netflix or Amazon have done nothing special than what they've been doing for the last 5 years. I wish we were getting insane tech out of this bull run but the truth is there's no "innovation" behind it and their paper is just being used as a shield by investors which is why their stocks keep going up.

The "growth" in tech has been entirely driven by monetary policy.

Entirely? Google revenue in 2014 ($66B) to 2019 ($161B) is 143% growth over 5 years.

No doubt monetary policy has an effect, but tech companies have grown substantially over that time as well.

Re: U.S. tech stocks are now worth more than the entire European stock market

#19

Post by treebornfrog »

drwoland wrote: post #8
Guzba wrote: post #4

The growth in tech stocks has been pretty insane imo. It's so easy to be afraid though and call this another 2000, but we really don't know what the future holds. I wish Europe had it's own set of exciting tech companies. That would be amazing. As a human living on this planet, the more things available to me, the better. Unfortunately, Europe doesn't seem to do much anymore. Google "European growth stocks". I want t…

The sad thing is, at least in the UK start ups are often headquartered in the US to make it easy to chase valley VCs.

Yup, a startup I invested in here in the UK at seed round just did the Delaware flip for their A.

Re: U.S. tech stocks are now worth more than the entire European stock market

#20

Post by free_rms »

spideymans wrote: post #14
baconandeggs wrote: post #7

Earlier quoted context omitted.

The "growth" in tech has been entirely driven by monetary policy. Google or Facebook or Apple or Netflix or Amazon have done nothing special than what they've been doing for the last 5 years. I wish we were getting insane tech out of this bull run but the truth is there's no "innovation" behind it and their paper is just being used as a shield by investors which is why their stocks keep going up.

> The "growth" in tech has been entirely driven by monetary policy. For the uninformed, what monetary policy exactly is driving this growth?

"Quantitative easing".

One way to juice the economy is just print more money and give it to everyone. Everyone's richer, yay! Except you haven't increased production or necessarily consumption, so prices will just equalize to the new money supply and you get consumer price inflation.

For QE, we got smarter, and just gave all of the money to the bankers, because that's what all the economic experts who work at banks said to do. So all of the inflation happened in assets held by banks and rich people instead -- tradeable securities and real estate in coastal areas.

Post reply on HN