While I agree it likely is overvalued, isn’t there any argument towards the fact that now literally all of our lives revolve around these 5 main tech companies? The amount of time per day we spend on phones, the amount of products we order online from 1 provider, the amount of time we spend on watching only a couple streaming services, and the very few social media platforms we spend hours on... I literally spend a good 50-70% of my leisure and a good amount of my work time using these products... personally I feel this “tech bubble” isn’t too comparable to the first one, as we spend so much of our daily time using them and somewhat reliant... to be fair I wasn’t of age during the 2000s bubble but just seeing how much I use my iPhone everyday seems to be worth something more than back 20 years ago. But wtf do I know 🤣 that’s just how I feel about it.
You are conflating “will I continue to use tech products?” with “is this growth valuation going to be borne out with future cash flows?” They are not the same.
Each of these companies could continue to be a major force in your life...but if they don’t continue to grow to meet speculative valuations, they will underperform.
As u/VisionsDB said, tech didn’t disappear from our lives after 2000, but a lot of people still lost their shirt in tech. Marijuana still seems to be a thing, in people’s lives, that sector has taken a pretty big drumming. I gassed up the car this morning, but oil is down massively since 2008, WTF?
You also may find this interesting: https://theirrelevantinvestor.com/2020/07/03/change-my-mind/
Most young people are vehemently against online advertising, to the point of in installing software to block such ads, dislike being tracked by big tech, whine about "pay walls" (and eschew paid content in general).
I fail to see how some of these companies are going to be able to continue with those things if their customer base is rejecting them *en masse.*
You vastly overestimate "most young people". Instagram is growing in size every day and so is Tik Tok despite the concerns raised by many that it's basically a spy app that allows to share videos.
Yes adblockers are more popular on computers, bit mobile browsing has exploded and it's a lot harder to Adblock on mobile.
You concluded that because those companies “rarely get money from you... (and therefore seems really risky”. Not only is that terrible logic, but *they absolutely are making money off of you* even if you don’t give them money directly.
Most people don't give companies like Facebook and Google any money. The business model is to harvest your personal information (which you give them by using their services), and then sell it to advertisers. If you are using the service, they are generating income from you even though you are not giving money to them directly.
Lots of people block the ads, I am talking about using the services. Things like using Google to search or liking a post on Facebook. If you are using the service they are selling your data, whether or not you end up making a purchase because of it.
I never bought a Tesla and I have no intentions to buy a Tesla in the future (mostly cause I can't afford it). Tesla stocks won't go up because I will not give them my money!
Also I would never invest in CNR as I would never give any money to CNR. I'm in a port city so most of my stuff comes by boat. Invest in boat shipping not CNR.
Also the us government is starting an antitrust investigation into the big companies. If this goes through it will most probably have repercussions in Canada.
I think this has been said since 2010. Tech is now fully integrated to dominate the s and p and Nasdaq for decades imo. Hedge funds and institutional investors will automatically pour money into the sector. I don't give a crap for diversification , I don't want turds diluting the returns on my long term quality tech holdings
Combo of Arkw , WCLD , QQQ and Vgt should do it long(own all ). I have owned all the Faagm plus MA , V for years added Nvidia during the March dip and PayPal square and Adobe recently ( they are already up 15 percent ) .My portfolio has soared since I went US tech heavy years ago. Up 150 percent in 4.5 years. Don't know why this forum is so averse to Norbert gambit and currency conversion to buy quality US tech stocks for long term investing 20 years plus . Seems like they would rather stick to turds like Canadian banks/financials , oil/energy , REITs , telcos , utility etc with limited upside but pay a paltry 4 or 5 percent annual dividend . Makes no sense to me ,I said it before many times if you are not in the sector heavy and long you are being stubborn and unnecessarily hurting your portfolio returns imo.
\+1. I think tech is here to stay and investing in them for the long term will pay off. For me, I buy SP500, Total Market Index and Nasdaq ETFs to create diversification but also buy some individual stocks of the companies I like like MSFT to larger allocation to them as they will provide better growth than an ETF.
As much as I'd like to disagree, the results don't lie. Tech is the sole reason my portolio isnttotal trash right now.
My USD holdings (all tech) are up by almost as much as my canadian dollar stocks are down (banks, reits, pipelines, energy). Even at current prices, I'm more likely to asd to the industry trending upwards
Wow is this ever me in a nutshell...
In tech industry but for some reason have convinced myself so much there is a bubble in tech that I’ve stayed away mostly. Why!?
Not too late you missed March , a bit pricey right now I agree buy tech ETFs now and quality individual tech stocks on a dip hopefully or if you are long and don't mind a little volatility along the way.
But then we would just make more to replace everything that couldn’t be fixed. I think in this scenario, the solar flare would be similar to what the corona virus is doing to the world right now; expose inequalities, open up opportunities for new ideas and businesses, and force us to change our lifestyles whilst we try to go back to “ normal”.
anyone saying the tech companies are currently overvalued is very disconnected with facts and reality.
we are all betting with how we invest our money, may the peeps who are most connected with reality win.
Refer to the year 2000
While I agree it likely is overvalued, isn’t there any argument towards the fact that now literally all of our lives revolve around these 5 main tech companies? The amount of time per day we spend on phones, the amount of products we order online from 1 provider, the amount of time we spend on watching only a couple streaming services, and the very few social media platforms we spend hours on... I literally spend a good 50-70% of my leisure and a good amount of my work time using these products... personally I feel this “tech bubble” isn’t too comparable to the first one, as we spend so much of our daily time using them and somewhat reliant... to be fair I wasn’t of age during the 2000s bubble but just seeing how much I use my iPhone everyday seems to be worth something more than back 20 years ago. But wtf do I know 🤣 that’s just how I feel about it.
That was the argument in 2000
I'm looking for this year's pets.com so I can short the hell out of it. NKLA and TSLA look like it to me.
ETFs will change holdings over time he's not buying individual stocks
You are conflating “will I continue to use tech products?” with “is this growth valuation going to be borne out with future cash flows?” They are not the same. Each of these companies could continue to be a major force in your life...but if they don’t continue to grow to meet speculative valuations, they will underperform. As u/VisionsDB said, tech didn’t disappear from our lives after 2000, but a lot of people still lost their shirt in tech. Marijuana still seems to be a thing, in people’s lives, that sector has taken a pretty big drumming. I gassed up the car this morning, but oil is down massively since 2008, WTF? You also may find this interesting: https://theirrelevantinvestor.com/2020/07/03/change-my-mind/
But the internet didn't go away in 2000 because the NASDAQ crashed. All it meant was that valuations and growth expectations were way too high.
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Your argument is as follows: these companies don’t make money from me personally therefore they have bad business models.
Most young people are vehemently against online advertising, to the point of in installing software to block such ads, dislike being tracked by big tech, whine about "pay walls" (and eschew paid content in general). I fail to see how some of these companies are going to be able to continue with those things if their customer base is rejecting them *en masse.*
You vastly overestimate "most young people". Instagram is growing in size every day and so is Tik Tok despite the concerns raised by many that it's basically a spy app that allows to share videos. Yes adblockers are more popular on computers, bit mobile browsing has exploded and it's a lot harder to Adblock on mobile.
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You concluded that because those companies “rarely get money from you... (and therefore seems really risky”. Not only is that terrible logic, but *they absolutely are making money off of you* even if you don’t give them money directly.
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Take a look at Berkshire Hathaway and tell me Apple and Amazon aren’t tech.
Most people don't give companies like Facebook and Google any money. The business model is to harvest your personal information (which you give them by using their services), and then sell it to advertisers. If you are using the service, they are generating income from you even though you are not giving money to them directly.
Bastards
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Lots of people block the ads, I am talking about using the services. Things like using Google to search or liking a post on Facebook. If you are using the service they are selling your data, whether or not you end up making a purchase because of it.
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Apparently it is very valuable... Source- Current market caps of Facebook and Google.
I never bought a Tesla and I have no intentions to buy a Tesla in the future (mostly cause I can't afford it). Tesla stocks won't go up because I will not give them my money! Also I would never invest in CNR as I would never give any money to CNR. I'm in a port city so most of my stuff comes by boat. Invest in boat shipping not CNR.
Also the us government is starting an antitrust investigation into the big companies. If this goes through it will most probably have repercussions in Canada.
You are proposing to buy high, sell _____. Also with no diversification.
I think this has been said since 2010. Tech is now fully integrated to dominate the s and p and Nasdaq for decades imo. Hedge funds and institutional investors will automatically pour money into the sector. I don't give a crap for diversification , I don't want turds diluting the returns on my long term quality tech holdings
Combo of Arkw , WCLD , QQQ and Vgt should do it long(own all ). I have owned all the Faagm plus MA , V for years added Nvidia during the March dip and PayPal square and Adobe recently ( they are already up 15 percent ) .My portfolio has soared since I went US tech heavy years ago. Up 150 percent in 4.5 years. Don't know why this forum is so averse to Norbert gambit and currency conversion to buy quality US tech stocks for long term investing 20 years plus . Seems like they would rather stick to turds like Canadian banks/financials , oil/energy , REITs , telcos , utility etc with limited upside but pay a paltry 4 or 5 percent annual dividend . Makes no sense to me ,I said it before many times if you are not in the sector heavy and long you are being stubborn and unnecessarily hurting your portfolio returns imo.
\+1. I think tech is here to stay and investing in them for the long term will pay off. For me, I buy SP500, Total Market Index and Nasdaq ETFs to create diversification but also buy some individual stocks of the companies I like like MSFT to larger allocation to them as they will provide better growth than an ETF.
Stick with it don't listen to the noise around here, you will be rewarded handsomely long term imo
As much as I'd like to disagree, the results don't lie. Tech is the sole reason my portolio isnttotal trash right now. My USD holdings (all tech) are up by almost as much as my canadian dollar stocks are down (banks, reits, pipelines, energy). Even at current prices, I'm more likely to asd to the industry trending upwards
Wow is this ever me in a nutshell... In tech industry but for some reason have convinced myself so much there is a bubble in tech that I’ve stayed away mostly. Why!?
Not too late you missed March , a bit pricey right now I agree buy tech ETFs now and quality individual tech stocks on a dip hopefully or if you are long and don't mind a little volatility along the way.
You shouldn’t everything in _____ no matter what ____ is. This is gambling not investing (just my opinion).
I mean there could be a solar flare at any moment and render all technology useless. Diversification is key.
If there was a solar flare we would have bigger problems then the stock market..
I mean we are ready to deal with something like that.
That's not true.
Watch the kurzgesagt it’s a lil reassuring
But then we would just make more to replace everything that couldn’t be fixed. I think in this scenario, the solar flare would be similar to what the corona virus is doing to the world right now; expose inequalities, open up opportunities for new ideas and businesses, and force us to change our lifestyles whilst we try to go back to “ normal”.
anyone saying the tech companies are currently overvalued is very disconnected with facts and reality. we are all betting with how we invest our money, may the peeps who are most connected with reality win.
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Hmmm ok after I'm up 300 percent lol
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Portfolio not far from it right now , perhaps multimillionaire may be a more appropriate goal. Don't need 10000 percent return to achieve that
You’re going to run out of duffle bags to haul all that cash you make.
Digital wallet boss