• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

“The Bubble Is About To Burst”: BofA’s 10 Reasons To Sell Tech Stocks

By Kurt Osterberg · On April 9, 2018

In a report that explains the recent market volatility as having nothing to do with Trump-induced nausea and everything to do with the Fed, BofA’s Michael Hartnett moves away from listing the latest tactical and cyclical market drivers which we covered earlier, and lays out what the Chief Investment Strategist thinks are the three big secular trends threatening investors in 2018. (“We believe the simple reason that risk assets are struggling in 2018 is the Fed. Investors have been forced to acknowledge a tightening cycle is well underway”)

These are as follows:

  • Regime shift from Quantitative Easing to Quantitative Tightening
  • War on Inequality trade, immigration & redistribution policies
  • Occupy Silicon Valley policies
  • Combining these, the result over the next few months could be nothing short than the second bursting of the tech – or technically e-commerce – bubble.

    Recall that two weeks ago, we first showed that according to BofA, we are now witnessing the third biggest bubble in history created by a central bank. As Hartnett wrote, “the lowest interest rates in 5,000 years have guaranteed a melt-up trade in risk assets”, which Hartnett has called the Icarus Trade since late 2015, and points out that the latest, “e-Commerce” bubble, which consists of AMZN, NFLX, GOOG, TWTR, EBAY, FB, is up 617% since the financial crisis, making it the 3rd largest bubble of the past 40 years, and at this rate – assuming no major drop in the 6 constituent stocks – the e-Commerce bubble is set to become the largest bubble of all time over the next few months.”

    The problem is that lasting even a few months with a “major drop” in the e-commerce bubble may prove very problematic, largely due to what Hartnett calls “Occupy Silicon Valley”, which he explains as follows:

    The economic & social disruption of technology is unlikely to stop. It has many beneficial economic & social impacts. But the sector’s growth, power & visibility make it extremely vulnerable to increased regulation & taxation, most especially if recession wrecks government finances.

    Print Friendly, PDF & Email

    Share Tweet

    Kurt Osterberg

    You Might Also Like

    • Finance

      Bored Ape Metaverse Launch Date set for April 30

    • Finance

      Celebrity Backed NFT Collections to Invest in 2022

    • Finance

      Bored Ape Metaverse Launch Date set for April 30

    No Comments

    Leave a reply Cancel reply

    Top Finance

    • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
    • Hedge Funds In The US Hedge Funds In The US
    • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
    • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
    • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

    New Posts

    • Bored Ape Metaverse Launch Date set for April 30

      Bored Ape Metaverse Launch Date set for April 30

      April 24, 2022
    • Celebrity Backed NFT Collections to Invest in 2022

      Celebrity Backed NFT Collections to Invest in 2022

      April 24, 2022
    • Bored Ape Metaverse Launch Date set for April 30

      Bored Ape Metaverse Launch Date set for April 30

      April 24, 2022
    • Mutant Ape Yacht Club Hits 32 ETH All Time High Price Floor

      Mutant Ape Yacht Club Hits 32 ETH All Time High Price Floor

      April 22, 2022
    • Rare CryptoPunk #7756 sells for $3.2 million (1050 ETH)

      Rare CryptoPunk #7756 sells for $3.2 million (1050 ETH)

      April 22, 2022
    • About
    • Contact Us
    • Privacy & Policy
    • Sitemap
    • Terms of use

    Copyright © 2018-2021 NJCEE. All Rights Reserved.