High valuation Tech companies  ≈  growth stocks, which are getting hammered the most in this market blood bath.  The reason I believe is that recent data the Consumer Price Index show 4% and climbing fast, so people are now pricing in big interest increases.  Since growth stocks earnings are all in the distant future, they get discounted at a higher rate @Nikolas Kong #The Most Important Thing 

https://www.cnbc.com/2021/05/12/consumer-price-index-april-2021.html

The Most Important Thing

Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008

Nikolas Kong

High valuation Tech companies  ≈  growth stocks, which are getting hammered the most in this market blood bath.  The reason I believe is that recent data the Consumer Price Index show 4% and climbing fast, so people are now pricing in big interest increases.  Since growth stocks earnings are all in the distant future, they get discounted at a higher rate @Nikolas Kong #The Most Important Thing   https://www.cnbc.com/2021/05/12/consumer-price-index-april-2021.html Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008 The Consumer Price Index rise for April from a year earlier was the sharpest since September 2008. https://www.cnbc.com/2021/05/12/consumer-price-index-april-2021.html

https://www.nytimes.com/2021/10/10/upshot/shadow-inflation-analysis.html?referringSource=articleShare

Some companies haven’t been raising prices. Instead, they’ve been cutting back customer services and conveniences, but how should that be measured?

There Is Shadow Inflation Taking Place All Around Us

Wage increase can be a bit misleading yes. Mostly low wage workers lost jobs, which pushed average wage numbers up. Doesn’t necessarily mean that employers increased wages. Although that is what is claimed, so not sure how that is measured

Jozhe

only “cheaper” for old social security recipients if dollar falls

You could argue that, with 5% increase in wages, subscriptions just became cheaper.

It just shows how broken government controlled currencies are. People that lose the most are people with most of their holdings in currencies. Mostly poor people.

You could argue that, with 5% increase in wages, subscriptions just became cheaper.  It just shows how broken government controlled currencies are. People that lose the most are people with most of their holdings in currencies. Mostly poor people.

WRT to tech, many consumer-internet services—such as those offered by Facebook and Google—are “free”, so they’re unlikely to be affected. Apple so far appears to be holding the line on its pricey iPhones. But e-commerce firms, especially Amazon, could be squeezed. 

And what about the proliferation of subscription services, from Spotify to Netflix? There’s a good bet that if price rises cause consumers to rethink their spending, they will jettison some of their subscriptions. 

Look for a sudden slowdown in growth at subscription-based businesses.

Does this mean spending will go down and potentially revenue and stock prices of certain firms go down?

Chris Nheu

WRT to tech, many consumer-internet services—such as those offered by Facebook and Google—are “free”, so they’re unlikely to be affected. Apple so far appears to be holding the line on its pricey iPhones. But e-commerce firms, especially Amazon, could be squeezed.   And what about the proliferation of subscription services, from Spotify to Netflix? There’s a good bet that if price rises cause consumers to rethink their spending, they will jettison some of their subscriptions.   Look for a sudden slowdown in growth at subscription-based businesses.

D J

A group of likeminded people in The Most Important Thing are talking about this.