To the Moon!
Many Technology stocks are at or near all-time highs despite the fact that 40 million people are out of work.
- Despite the fact that many of those jobs aren’t coming back.
- Despite the fact that CRE deals are not getting done.
- Despite the fact that airline travel is still off 90%-plus and that airlines are locked in an existential fight.
- Despite the fact that multiple retailers have gone bankrupt and many more will follow.
I know, I know, this time is different.
- Unlimited Fed liquidity without consequences (cough, cough).
- Zero interest rate policy.
- We are reopening and the economy is about to skyrocket just as the equity markets are doing (if you believe that I will sell you the COVID vaccine I’ve cooked up in my home office. It hasn’t passed its Phase I trial yet but I’m sure it will sail through all three phases within the next month or so. Trust me.)
- Technology stocks are “immune” to recession, especially e-commerce stocks and video conferencing (What will investors say once these ultra expensive SaaS stocks are knocked off of their perch?)
We lack perspective. This time is not so different.
I can’t say it any better than Mr. John Kenneth Galbraith. If you believe this market is going to the moon click the link below. Even if you don’t believe we’re off to the races you may want to click below to access a copy of Mr. Galbraith’s book on Amazon.