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timmg | on: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
The way I've been thinking about it: there is too much money trying to pour into the market. That's why valuations are so high.

Maybe getting more of these big private companies public will bring valuations down a bit.

(Just my impression. No math or financial studies behind it :)

JumpCrisscross | parent | next
> there is too much money trying to pour into the market

Keep in mind that inflation ran over 7% annualized in April [1].

[1] https://www.bls.gov/news.release/cpi.nr0.htm

Auracle | root | parent | next
The vast majority of that was fuel.
JumpCrisscross | root | parent | next
> vast majority of that was fuel

Everything else is up around 3% YoY. And if energy and transportation are up double digits, and producer prices are up double digits, other consumer prices will follow.

themafia | root | parent
Yea and the cost of fuel has zero downstream effects on the economy.
Alive-in-2025 | root | parent | next
From that doc, prices went up 0.6% in one month, multiple by 12 get 7.2% annual inflation rate.
philipallstar | root | parent
Inflation is a measure of the cost of living. It's not got loads to do with large-scale, institutional investments.
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hungryhobbit | parent | next
No, the crash (that we all know is coming) will do that. Until then, history teaches that we'll just keep going up and up
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dangus | parent | next
Corporations across the board are experiencing record profitability. That's the reason behind the high valuations.

This isn't true of AI companies...yet. But these are companies entering the market with pre-IPO userbase (including lots of B2B) numbers that Meta and YouTube would have dreamed of before their acquisition/IPO.

I think this whole situation is very sleazy and corrupt, but ultimately my prediction is that nothing serious will come of it. Even the exposure of index and passive investing is overstated.

1270018080 | parent
There is nowhere else for that money to go