TEK2day

Operating at the Intersection of Technology and the Capital Markets

More Inflation Is Coming

The simple math is that the Federal Government is pumping $1.9 Trillion into the U.S. Economy. Treasury has issued 90 million stimulus payments worth $242 billion. More money in consumers’ pockets plus new Treasury bond supply plus relaxing of COVID restrictions translates to higher Treasury bond yields. The higher yields will result in less Technology M&A activity as we wrote last week. The rotation out of high-multiple, unprofitable Technology names is likely to continue for the foreseeable future.