Nomura Unveils The ‘4 Triggers’ That Will ‘Burst The Data Bubble’
One of the narratives that is quickly becoming a driver of markets is the idea that a confluence of factors have conspired against market darlings like Facebook and Google.
Not the least of these factors is politics. As we noted first thing this morning and as we detailed extensively over the weekend both here and elsewhere, the political environment is extremely charged right now, and the details around the Cambridge Analytica story suggest that Facebook is going to get thrown right back into
IMO The crypto currencies are the ” Bubble of The Bubble ” . When the crypto’s , especially BitCoin pop then we’re in for the economic denouement . As crypto currencies have a base utility value insofar as : Money Laundering , National capital flight , illegal activity transactions and tax avoidance ; We are not looking at a zero number rather a purely non-speculative utility based valuation .
Something I read this morning:
https://www.theatlantic.com/magazine/archive/2018/04/big-in-china-machines-that-scan-your-face/554075/
Interesting how to value some of these data….
The backlash will kill the ad funded website model. For example I enabled anti-tracking and and ad blocking in my browser this weekend. Unfortunately Heisenberg is collateral damage – he just lost my revenue.
And this is happening at the same time that major regime change relative bond/stock correlations, CB reversals, interest rates and bond pricing is taking place. It used to be that if a bomb went off in Baghdad, the market would turn down. Now, robots don’t care about any of that of course — and people, following the lead of the robots, don’t either. Interesting environment. Maybe the robots are essentially telling us how to trade because the algors reinforce it, and we stupidly follow with ETF’s. Why pick stocks? The algors do it for us. I don’t like how this story ends. If we have any brains, we know how it will end — just not when. For those without brains, well, “ignorance is bliss.”
The value of data is not in question. It is and it will increase in both value and usage. We are at the infancy stage of new technologies and we are living in the euphoric state of an open and limitless wild west. We believe new services and products come to us at no cost through the internet and a variety of other platforms such as Facebook, Twitter, Instagram, etc… Well there is a cost to each one of them and we have chosen to disregard it. Now as we acknowledge the risks of surrendering our searches, options, selections we realize that we are paying for this new found benefit we call the www. As we enter a more mature phase, it is incumbent on all of us and on the governing bodies to bring a level of order, ethics and law to the wild west. With that…..we will see valuations in the tech sector resized. After all there has been a long run for the entire tech sector for all the right reasons. As the rules begin to be defined, new tax laws written, the tech sector will begin to switch from high growth to growth and eventually to value. The public shaming of Facebook & Google should be viewed as a step in the right direction. We all need to be better informed user and F and others have long past their stage of innocence. They have made their money. Now they need to act in accordance with the norms of our society. You cannot rob your customers. Period. They have for too long utilized our identities and our likes for profit. In other words they have not paid for their raw material and they have not been particularly careful with their data. Is there any wonder they are so wildly successful? Well that’s about to change.