Taps Coogan – January 13th, 2021

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The following chart, from Kailash Concepts, is a reminder that we are in the midst of one of the great stock market bubbles of all time. The market cap of tech companies with negative earnings has now surpassed the peak of the Dot-Com Bubble. For those keeping track, the Dot-Com Bubble and the late 1920s are considered the largest stock bubbles of the last 100 years.

Given that the federal government is promising trillions of dollars of additional stimulus in 2021 and given that the Fed has decided to ignore inflation data for the foreseeable future, who knows how long this bubble will go on for. Maybe it’s a crack-up boom.

Wherever this is going, we’re living a speculator’s dream and an investor’s nightmare.

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