Black Monday

**Ricky-bobby** · 19-04-2024, 06:51 AM

https://uk.finance.yahoo.com/news/im...171929449.html head of imf talking to current world debt and rates. I can’t see them going down this year… dammit my mortgage is due in Jan!

**alokdhir** · 19-04-2024, 06:52 AM

Originally Posted by Daytr

I find it interesting that the NASDAQ seems to be more interest rate sensitive than the DOW. Yet most tech companies use equity rather than debt for finance & the big end of town are sitting on 10s of billions of cash each.

Its the multiple side of equation which is super rate sensitive ...

**Daytr** · 19-04-2024, 06:54 AM

Originally Posted by alokdhir

Its the multiple side of equation which is super rate sensitive ...

I.e consumer demand, I assume you are referring to.

I still think the equation is wrong when compared to the DOW.

**alokdhir** · 19-04-2024, 06:56 AM

Originally Posted by Daytr

I.e consumer demand, I assume you are referring to.

I still think the equation is wrong when compared to the DOW.

I was referring to p/e s ...as tech have higher p/e thus when rates go up then their valuations based on current cost of funds get subdued

**bull....** · 19-04-2024, 07:06 AM

NZ takes another step towards digital cash: What you need to know

https://www.1news.co.nz/2024/04/19/n...-need-to-know/

**Valuegrowth** · 19-04-2024, 11:10 AM

Originally Posted by Daytr

I find it interesting that the NASDAQ seems to be more interest rate sensitive than the DOW. Yet most tech companies use equity rather than debt for finance & the big end of town are sitting on 10s of billions of cash each.

The sector is over valued and crowded. Time to apply The Zulu principle introduced by English Accountant. Can we justify their historically high PE ratios? Besides companies have lean period as well.They don't go straight up.If I'm correct currently Apple and Telsra have some issues. I can see weakening of share prices(one by one)and a decline in sales in the sector. I expect much bigger sell-off than now. I was thinking about buying Baidu around $100. It dropped below $94 unexpectedly. There is a chance of dropping it below $60 when tech sector becomes out of favour.