Barron’s (May 27)
“Stocks are near their all-time highs.” Moreover, “investors are nervous about the numerous risks that could hit stocks and the economy. High oil prices and persistent inflation fears. The possibility that this will push the Federal Reserve to raise interest rates. Worries about artificial-intelligence disrupting software and other sectors.” Nevertheless, Goldman Sachs believes equities “are still good investments” because “rapidly rising earnings could keep pushing up stock prices” and, rather than dumping equities, investors can manage risk in other ways.
Tags: AI, All-time highs, Earnings, Economy, Equities, Fears, Fed, Goldman Sachs, Inflation, Interest rates, Investors, Nervous, Numerous, Oil prices, Stock prices, Stocks
The Times (May 27)
“Corporate leaders who think decades ahead in business become incredibly short-sighted in advocacy, financing ideas that become roadblocks to innovation and growth.” Big Tech is currently finding out about the phenomena that Milton Friedman dubbed “the suicidal impulse of the business community.” For years, Big Tech “helped fund climate activism,” but they now face “backlash as AI data centres drive demand for energy and infrastructure growth.”
Tags: AI, All-time highs, Earnings, Economy, Equities, Fears, Fed, Goldman Sachs, Inflation, Interest rates, Investors, Nervous, Numerous, Oil prices, Risk, Stock prices, Stocks
USA Today (January 2)
“The post-COVID-19 economy was finally supposed to stop defying gravity and topple into a recession this year.” While “growth is expected to slow… other factors are likely to keep the economy afloat, forecasters say, including near-record home and stock prices, a further easing of inflation to or near the Fed’s 2% goal and the central bank’s tentative plans to cut interest rates more sharply than previously anticipated.”
Tags: Easing, Economy, Fed, Growth, Inflation, Interest, Post-Covid, Rates, Recession, Record, Slow, Stock prices
Financial Times (November 23)
“China’s repeated attempts to tackle its worsening property crisis resemble firework displays — full of light and sound, quickly extinguished. Property stock prices have burst upwards with each new set of government measures to boost the market, only to collapse shortly thereafter. This week’s rally should not differ.”
Tags: Attempts, Boost, Burst, China, Collapse, Crisis, Extinguished, Fireworks, Government, Market, Property, Stock prices, Tackle, Worsening
Institutional Investor (August 29)
“Ever since ChatGPT burst onto the scene last November…so-called “generative AI” has turned the markets on their heads.” Venture capitalists, “coming off the worst year in recent history,” have “redirected their dollars to AI upstarts. Meanwhile, the stock prices of the big tech names suspected to be the major beneficiaries of this often-called ‘revolutionary’ form of artificial intelligence have skyrocketed.” In 2023, “generative AI and machine learning start-ups raised about $39.4 billion.” The massive inflows are creating an ideal environment for fraudsters and critics “are starting to wonder whether the latest technology is really transformational or merely evolutionary.”
Tags: Big tech, ChatGPT, Critics, Evolutionary, Fraudsters, Generative AI, Machine learning, Markets, Revolutionary, Skyrocketed, Start-ups, Stock prices, Technology, Transformational, VC
New York Times (July 25)
“One question is at the top of many investors’ minds: Is the hype around artificial intelligence, which has propelled tech giants’ stock prices sky-high in recent months, justified, or is it another bubble in the making?” At the moment, “Wall Street is deeply divided about the A.I. rally” though this may change as Big Tech reports earnings.
Tags: Artificial intelligence, Bubble, Divided, Earnings, Hype, Investors, Justified, Propelled, Rally, Sky-high, Stock prices, Tech giants, Wall Street
Economic Times (January 23)
Big Tech’s “planned rightsizing is… unlikely to make up for the deep correction in 2022 of technology companies’ stock prices. Earnings estimates for the last quarter of 2022 are grim and Big Tech may have to go in for more job cuts to keep market capitalisation aloft. This could be a theme for the industry in 2023.”
Tags: 2022, 2023, Big tech, Deep correction, Earnings, Estimates, Grim, Job cuts, Market-cap, Rightsizing, Stock prices, Technology, Unlikely
New York Times (July 1)
“There’s an anomaly in an economy that is supposedly running flat out: Many families still haven’t recovered the wealth they lost in the financial collapse…. Despite high stock prices and record home prices, household net worth since 2007 has decreased for all income groups — except the top 10 percent.”
Tags: Anomaly, Economy, Families, Financial collapse, Home prices, Household, Net worth, Stock prices, Wealth
IR Magazine (December 7)
“New CEOs who present their strategy within the first 100 days of their appointment can see stock prices rise by an average of 5.3 percent on presentation day (around $2.8 bn in market value). The average stock price gain for presentations by new CEOs appointed from outside the organization is 9.3 percent (just under $5 bn), and for new CEOs from outside the company’s home industry it’s 12.4 percent (around $6.6 bn).” Despite these impressive results, “only 40 percent of new CEOs present on strategy in their first 200 days.”
Tags: Appointment, CEOs, Industry, Presentation, Stock prices, Strategy
Wall Street Journal (January 27)
“Beijing’s decision to stop propping up stock prices is a positive sign that leaders are getting serious about reforming its markets. The expected appointment of Chongqing Mayor Huang Qifan, one of China’s most prominent free-marketeers, to oversee regulators would restore confidence once the market finds its real floor.”
Tags: Beijing, Chongqing, Confidence, Huang Qifan, Markets, Reform, Regulators, Stock prices
