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Gods Don’t Bleed (But Albert Edwards Isn’t So Sure)
Don't doubt the gods.
That was the lesson learned over the summer of our discontent, when the pande
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That was super interesting tail risk to consider. Growth stocks are not growth stocks, they are cyclical stocks, because clearly one thing is clear that these are Pandemic stocks, they are rewarded for that, but they are also assumed to benefit in growth challenged world, but if that is a big fat lie, then maybe not, that would shock for sure, excellent idea to ponder for a resident contrarian.
As Neil Gaiman pointed out in American Gods (and you implied in your linked piece above) humans invent their gods and like Tinkerbell, they only live as long as people believe in them. Thor and Baal are gone. Our investment and money gods are believed in for now but things can change. After COVID becomes less of an influence in two or three years what will happen to Amazon and other gods? Up? Down? Stay the same?
Investors latch onto themes. They will keep buying into the themes until they no longer work in the real world. Then they sell. Today’s theme is that tech stocks are secular growth vehicles and don’t hit rough patches like any other sector. In the long run, tech really is a growth sector- but prices have outrun reality in my view, and tech hits slow or no growth patches just as any sector does. And competition or regulation will also be a limiting factor. Caveat emptor.
FANAMA reads much better than FAAANM 🙂