It finna get way worse soon
American Economics Thread
- Thread starter Bernard
- Start date
There are 8 companies (all American) that have a market capitalization of over $1 trillion - Meta/Facebook, Amazon, Alphabet/Google, Nvidia, Apple, Tesla, and Broadcom.
The US financial sector allows for substantial financing of risky and high potential projects with innovative equity structures that allows for fabulous innovation and US near monopolization of various kinds of cloud computing (AWS/Azure), networking switching semiconductors (Broadcom), among other high-technology inputs necessary for daily life.
It also leads to absolute US dominance of global cap tables - with many investable opportunities from the premier global firms - from the most conservative utility & real estate firms such as Income Realty, Consolidated Edison, and NextEra Energy (Florida Power & Light) that have provided steady dividends and consistent service for decades on-end; to transformative industrial firms such as CF Industries, Emerson Electric, Celanese, and Agilent Technologies that have reshaped industry over and over again; to firms supporting the above like JPMorgan Chase & Co. to Brown & Brown that continuously redefine management; to firms like Procter & Gamble and Walt Disney Co. that captive again and again a profound consumer experience, to highly risky firms that lead technological revolutions such as Microsoft, Broadcom, and Nvidia - US capital markets contain multiples for every kind of investor of every risk category to fund all sorts of transformative capital projects
The US financial sector allows for substantial financing of risky and high potential projects with innovative equity structures that allows for fabulous innovation and US near monopolization of various kinds of cloud computing (AWS/Azure), networking switching semiconductors (Broadcom), among other high-technology inputs necessary for daily life.
It also leads to absolute US dominance of global cap tables - with many investable opportunities from the premier global firms - from the most conservative utility & real estate firms such as Income Realty, Consolidated Edison, and NextEra Energy (Florida Power & Light) that have provided steady dividends and consistent service for decades on-end; to transformative industrial firms such as CF Industries, Emerson Electric, Celanese, and Agilent Technologies that have reshaped industry over and over again; to firms supporting the above like JPMorgan Chase & Co. to Brown & Brown that continuously redefine management; to firms like Procter & Gamble and Walt Disney Co. that captive again and again a profound consumer experience, to highly risky firms that lead technological revolutions such as Microsoft, Broadcom, and Nvidia - US capital markets contain multiples for every kind of investor of every risk category to fund all sorts of transformative capital projects
Highly efficient resource utilization to reduce vacancies. Another win for the best economy in the world.
In the past 3 weeks the 10y bond yield has climbed like crazy even after a Fed rate cut. Bond market anticipates more inflation + more borrowing with Trump’s term. Bond market is usually not wrong. It will likely continue to go up and make it more expensive for the US to borrow.
in the near future the US may have to choose between hyperinflation or a debt spiral (when interest payments outpace tax collection)
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Tesla's sales growth is at 0% this year, marking the first time in years that the company might not see an increase in annual car sales.
Meanwhile, Tesla stock the top performer on the S&P 500 and it's up more than 80% since the election just 6 weeks ago.
That's financialization for you.
Meanwhile, Tesla stock the top performer on the S&P 500 and it's up more than 80% since the election just 6 weeks ago.
That's financialization for you.
I forgot to add that next year $7 trillion of US bonds will mature, an unusually high amount even for the US. The US gov will have to roll over a lot of this and issue more debt. Let’s see what happens
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Tesla stock mooned after the election an was trading flat before the election so it's very clearly a (reasonable) bet by the market that Trump will engage in various kinds of corruption (ex. the Post Office buying Tesla cars because Trump is in the White House). This shows that US equity markets are capable of efficiently absorbing information and repricing accordingly