The spread of these contagious narratives has a determining effect on the stock market valuations. For instance, in the late 1990s, the positive dot.com narrative resulted in massive over-valuation of firms that had no viable businesses. It was followed by an era driven by the opposite narrative, in which anything to do with technology was stock-market poison. Amazon barely survived this “nuclear winter” for tech stocks of that period.
While tech stocks with strong businesses are lower than their recent highs, as a result of the currently contagious narrative for investors to “get out of tech,” these stock are still doing better collectively than the the average S&P 500 company, as shown in Figure 1.The memes that “tech is dead” or that “customer choice will disappear” are nonsense. Nothing in the current uptick of inflation has changed the over-arching the narrative that the future of the economy lies in tech.
It is a forward-looking measure, incorporating the combined judgment of the stock market as to the future shareholder value of each company. In this respect, it differs from indices like the Fortune 500 which ranks firms by way of the backward-looking measure of total revenue.
When your tech stock shares have dropped 30, 40, or 50% you don't give a shit about the what's happening with the S&P.
“This is what we want you to see so you don’t think we are to blame”. -MSM
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
S&P 500 falls into bear market, joins NasdaqThe broadest measure of the U.S. stock market entered a bear market on Friday. The bull will wake up soon. Funny that sanctions on the Russian Bear caused this bear market. Big ole Bear too... Covid panic was anomalous.... this is the 'big one' pullback that was long overdue after the decades long, Fed-fuled bubble post-2008. This one is just getting started... get used to the idea of 1850 on the S&P 500.
Source: FoxBusiness - 🏆 458. / 53 Read more »
The technician who called the 2020 market bottom says a 'shocking rally' is in storeThe technician who called the 2020 market bottom says a ‘shocking rally’ is in store Yeah there will probably be an ok rally but date it, don't marry it Rally in stocks perhaps. Crude reaching its high in 4 days. That is not going to happen Not yet though. In end of 2023.
Source: MarketWatch - 🏆 3. / 97 Read more »
S&P 500 fends off a bear market at the end of another brutal weekThe S&P 500 has tumbled more than 20% from its peak in January as mounting recession fears spook investors. Some good news. That every illegal the Biden Admin is allowing to cross our boarder right now, except for the terror cells, drug cartel and gang members; nearly every single one of them is pro-life and Christian. I miss the times of peace and prosperity under President Trump! Most of the economy is about employment income, and employment is up.
Source: CBSNews - 🏆 87. / 68 Read more »
Crypto And Stock Market Doom Loop: Can It Be Avoided?Bitcoin has crashed but it still has a way to go. It will take something remarkable to go awry to turn this dump around.
Source: Forbes - 🏆 394. / 53 Read more »
Media Stocks Mixed as Markets Tumble Toward Bear TerritoryAmid fears of a looming global recession, shares of media companies had a mixed day of trading Friday as major market indexes marked their the longest string of weekly losses in decades. The S&…
Source: Variety - 🏆 108. / 63 Read more »
Bear market beckons as stock volatility continues in 2022The stock market's brutal year neared a grim milestone as the S&P 500's slide on Friday threatened to leave it in a bear market for the first time since March 2020, fueled by worries over sky high inflation, a hawkish Federal Reserve and future economic growth.
Source: Reuters - 🏆 2. / 97 Read more »