"Pour water into your wine to create more wine" sort of scenario. Why nobody is talking about the USD being diluted and the inflation effects are embodied in virtual equity valuations?
U.S. tech stocks are now worth more than the entire European stock market
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Re: U.S. tech stocks are now worth more than the entire European stock market
#22The 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.
Also a few billion people stuck at home much more than usual this year.
Re: U.S. tech stocks are now worth more than the entire European stock market
#23I find the headline a bit misleading bc even European tech companies like Spotify are listed on the US exchanges.
Re: U.S. tech stocks are now worth more than the entire European stock market
#24The 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 problem is not the lack of exciting tech companies, but the ability - and interest - to retain them in Europe.
Money is cheap in the US, and most of EU countries are quite pleasant to live without obscene amounts of money in the bank (basically thanks to public services), so any good offer it's quite convincing.
Not to mention that EU governments don't see tech companies as strategic assets, unlike the US/China.
So I guess it's a mix of culture/policies.
Re: U.S. tech stocks are now worth more than the entire European stock market
#25The 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 problem is not the lack of exciting tech companies, but the ability - and interest - to retain them in Europe. Money is cheap in the US, and most of EU countries are quite pleasant to live without obscene amounts of money in the bank (basically thanks to public services), so any good offer it's quite convincing. Not to mention that EU governments don't see tech companies as strategic assets, unlike the US/China.…
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Re: U.S. tech stocks are now worth more than the entire European stock market
#26Earlier quoted context omitted.
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 d…
The roaring 20s are back, baby!
Re: U.S. tech stocks are now worth more than the entire European stock market
#27Earlier quoted context omitted.
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 d…
You're presenting this as if investors have no choice in the matter. As far as I know, there is 401k transparency meaning that investors know what their money is invested in.
On top of that, all companies I've worked for in the USA allowed me to choose exactly how and where my money will be invested.
Nothing described by the article you posted lets me think that this will be no longer the case.
Re: U.S. tech stocks are now worth more than the entire European stock market
#28The 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 problem is not the lack of exciting tech companies, but the ability - and interest - to retain them in Europe. Money is cheap in the US, and most of EU countries are quite pleasant to live without obscene amounts of money in the bank (basically thanks to public services), so any good offer it's quite convincing. Not to mention that EU governments don't see tech companies as strategic assets, unlike the US/China.…
> Not to mention that EU governments don't see tech companies as strategic assets, unlike the US/China.
Maybe that was once true, but it certainly isn't true today.
Re: U.S. tech stocks are now worth more than the entire European stock market
#29The 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…
Feels like the big difference is people threw money at tech stocks last time in a bout of speculation, they're throwing money at them this time in a flight to safety.
Re: U.S. tech stocks are now worth more than the entire European stock market
#30It is worth understanding that the European stock market, bar the UK and possibly Sweden, isn't like the US. Most companies finance themselves through banks. Whilst Europe as an economic unit is larger than the US, capital markets are still basically non-existent (bar the efforts of the ECB to throw cash at anyone who raises money from capital markets).
Also, the rise of tech stocks is significant not only relative to other economies but relative to other large stocks in the US. The S&P500 is more concentrated than it has ever been and is pretty close to what you see in emerging markets (where the top 5 or so stocks make up a huge chunk of the total index).