2018-09-11 — sovereignman.com
I want to be clear. This isn't about whether or not Elon puffed weed. Honestly, who cares. It's just a plant. What's important is that this is more demonstrably erratic and manic behavior from the visionary founder. He's just showing A LOT of inconsistencies.
And in addition to Tesla, the government is gunning for Zuckerberg and Facebook. Snapchat is proving to be a disastrous investment (down nearly 65% from its IPO). WeWork bonds just got downgraded to junk... We're starting to see major cracks in tech investors' faith.
This is a MAJOR turn that's taken place over the last couple of months. And if tech stocks go down, the market is going with it. Tech stocks, in particular "FAANG" stocks -- Facebook, Amazon, Apple, Netflix, Google -- have been holding this market up for a long time. Tech stocks have been responsible for around 95% of stock market gains this year.
In addition to investor's losing faith, the government is also breathing down the necks of these tech giants... Senator Bernie Sanders introduced the cutely named Stop Bad Employers by Zeroing Out Subsidies Act (aka Stop BEZOS Act) that aims to tax companies for low-wage employees receiving government assistance.
And now companies are viewing their visionary founders as liabilities... Apparently investors and boards have woken up to the fact that these guys are fallible (and mortal), so there's more talk of key man risk insurance should anything happen to them.
It's been nothing but buttercups and unicorns for tech stocks these past few years. And these recent developments go to show you, everything moves in cycles. And we may be entering a downcycle in tech.
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