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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

#41

Post by KMag »

sirmoveon wrote: post #21

"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?

If that's the case, one would expect the FX rate changes to equally increase European market valuations, if USD is the unit of account (numerare). If the Euro were being diluted at a rate that kept FX rates in check, then one would expect that to equally buoy European market valuations. So, there may well be something to be said about USD dilution, but I don't see how it affects the relative market capitalizations of the US tech sector vs. the Eurozone markets.

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

#42

Post by libertine »

Ericson2314 wrote: post #28
libertine wrote: post #24

Earlier quoted context omitted.

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.

It's still miles away from what's done in the US/China.

Like, the whole TikTok thing is being ridiculous, in my point of view.

For example, strategic assets for the EU are airlines, or automotive industry, it's where you've seen government intervention.

But I'm not saying it's a good thing! In my country China bought the only Energy company we had - how isn't this considered a strategic asset?

Sometimes I think EU is too naive, or the whole "trying to lead by example" doesn't work financially/growth wise.

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

#43

Post by MildlySerious »

Ericson2314 wrote: post #28
libertine wrote: post #24

Earlier quoted context omitted.

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.

What speaks against this being true?

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

#44

Post by dontworry99 »

armitron wrote: post #27
dontworry99 wrote: post #13

Earlier quoted context omitted.

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.

You’re assuming your behavior is the norm.

You are aware that’s possible. Not everyone is. Employers at a lot of companies just pick a default and employees forget about it.

It’s not reasonable to expect the masses to babysit ephemeral inventions that they aren’t ever aware of.

Ok, man. Yep we should all just stick in our heads this is of course proper application of agency defined “for us”. Paulo Freire is rolling over in his grave.

This culture is falling apart because it’s looking for financial efficiency above all else, not emotional resiliency. Just gonna ignore whatever immutable aspects of reality get in the way of that.

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

#46

Post by stefanfisk »

Silhouette wrote: post #35
drwoland wrote: post #8

Earlier quoted context omitted.

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.

Also, we have an annoying amount of red tape from both the UK itself and, at least for the immediate future, the EU. It gets in the way of starting a business, but worse, it gets in the way of taking significant steps necessary to grow a new business like taking on your first employees. If you've got months or years of runway from external funding, that's irritating but not a big deal. You hire someone to deal with i…

Whenever this argument comes up I feel like I'm missing something. which typical European regulations get in the way of bootstrapping startups?

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

#47

Post by AznHisoka »

Silhouette wrote: post #22
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. Also a few billion people stuck at home much more than usual this year.

FB, Google, and Microsoft all lowered their revenue guidance they set pre-COVID. This stay at home situation has clearly benefited some companies (Zoom, Docusign, Amazon), but definitely not most tech companies.

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

#49

Post by ng12 »

baconandeggs wrote: post #9
ng12 wrote: post #5

Earlier 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.

Sure, but "hard cash" is funny money; that's why people investing in FAANG don't want it and prefer stocks.

Fine, but then the EU market is equally funny.

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

#50

Post by [deleted] »

systemvoltage wrote: post #36
DeonPenny wrote: post #10

Europe growth in the past 12 years has be pretty anemic for the past 10 years. Look at the GDP per capita growth of lets say germany and you get a real good idea of how mismanage their economy has been for the past decade so this doesn't surprise me.

Perhaps you’re getting downvoted for not providing sources. Can you add citations?

[deleted]
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