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‘Surreal’ Tech Rally Vulnerable To Reality Check, Some Worry
As you might've noticed recently, equities aren't inclined to believe central banks when it comes to policymaker pretensions to the "higher for longer" narrative.
The fact that big-cap US tech rallied 2% following Jerome Powell's chat with David Rubenstein spoke volumes. Although you might argue Microsoft's great day was more influential when it comes to the benchmarks than any "relief" from Powell's "lost opportunity," I'd still suggest his tone was unduly soft, notwithstanding the allusion to
H-Man, while there could be a jolt, more likely CPI just becomes sticky. Not jumping up but not falling dramatically, somewhat like a bad cold – while you feel bad, it doesn’t get nastier, it just won’t go away.
In case there were any doubts about whether or not we are still in a bubble, my massage therapist’s 14-year old son trades tech stock on cash app. On the other hand, what if mobile technology and easily accessibly platforms are permanently changing market participation?
Just like going on any of those other gambling site, poker/sports
As in past recessions, tech stocks will lead the way out, whether the economy is recessionary, or simply cooling. Whatever it is that’s happening right now with the economy, we have to respect it. I know from experience that worries about recession or a bad economy help nothing.
I fancy the innovative, small-cap techs right now. In past recessions we’ve seen advertising provide the first hints of active signs for coming out of a downturn. There are some innovative small-cap advertising tech stocks that help evolving tech businesses grow and help themselves in the process. Right now, I like to look at both sides of that equation, both from the business side and the advert side.