So it is a race against time for COMRADERIE and GLORY for the Russians as "Wall Street" and "The City" could messily implode at any moment, with problems ranging from shitty software written by overpaid web developers, dangerous feedback loops everywhere, addiction to free money injections directly from the printing press, valuations with no relation to the economic fundamentals and debt abysses never seen before.
and about this....
And that gets to the real truth about the Wall Street bubblies which were flowing last Friday. Morgan Stanley’s chief equity strategist, like the rest of the sell-side stock peddlers, has it exactly upside down; and the proof of the pudding in this instance lies is in Morgan Stanley’s own “New Tech” index of 16 high flyers of the present era.
This charmed circle includes Google, Amazon, Baidu, Facebook, Saleforce.com, Netflix, Pandora, Tesla, LinkedIn, ServiceNow, Splunk, Workday, Ylep, Priceline, QLIK Technologies and Yandex. Taken altogether, their market cap clocked in at $1.3 trillion on Friday. That compares to just $21 billion of LTM net income for the entire index combined.
The talking heads, of course, would urge not to be troubled. After all, what’s a 61X trailing PE among today’s leading tech growth companies?
As it happens, quite a bit. When you take GOOG’s middle-aged profits machine out of the mix, you get something altogether more frisky. Namely, a collective market cap of $840 billion for the other 15 names in the Morgan Stanley index and LTM net income of exactly $6.0 billion.
As we said at the top—-let’s see. That’s a PE multiple of 140X. That’s February 2000 all over again.
Take cover. The Wall Street bubblies are back!
I reckon the Russians will lose.