Tag: bubble
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Chart of The Day
It’s a bit of an eye test and may require you to pinch and expand your phone screen. The takeaway is that the purple line that exceeds 300% year-over-year growth is the Money Supply (M1) measured at monthly intervals. When the Fed prints money and mails it to people they will spend it. In this…
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The Fed Already Blinked
It would have made for great theater if the Fed truly wanted to win the war against inflation. Unfortunately, the Fed already blinked. If the Fed’s mission truly was to get CPI back down to 2%, the valuation froth that began to manifest in 2019 peaking with 2021’s valuation mania (which made the 1999-2000 dot…
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2021 Outlook: The Froth Will Continue
From Bubble valuations to zombie companies to Cleantech, 2021 is likely to deliver more of the excesses of 2020. Barring a negative event out of left field, it will take a meaningful interest rate hike and/or corporate tax increase to derail the asset bubble of 2020 that bled into equities, fixed income, home values, lumber,…
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Nosebleed Technology Stock Valuations & CEO Compensation
Snowflake and Tesla are the poster children for irrational valuations and outsized CEO compensation packages. Investors – or more accurately “speculators” – value Analytics company Snowflake (tkr: SNOW) at 183x Revenue. That’s right, not 183x depressed earnings. 183x revenue. ($110 billion Market Value on approximately $600 million of Revenue). Speculators value Snowflake 9x more than…
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