Why Boring Is Good: Beware of Tech Hype
Mike Larson is sounding the alarm over what he perceives to be a growing tech bubble. Exhibit A is Uber, the ride-sharing company worth billions that has been operating at a loss for almost a decade.
He criticizes the hype-driven media and lazy fund managers for a lack of healthy skepticism. A senior analyst with Weiss Ratings, he believes that, just like the dot-com bubble he lived through, easy credit has been fueling overvaluation of assets and tech startups.
Now that the Federal Reserve is raising interest rates, the easy-money environment will dry up and many firms won’t survive. Larson advocates going back to more “boring” stocks for protection against the eventual unwinding.
- Visit Weiss Ratings’ website and follow it on Twitter and Facebook.
- Read “Understanding Why Uber Loses Money,” on Crunchbase.
- Read “More Tech Stock Bubble Ahead?” on Weiss Ratings.
- Read “What You Can Do amid All This Dot-Com Era Déjà Vu,” on Weiss Ratings.
If You Liked This Episode
- “The Great Debate: Michael Larson on Optimists versus Pessimists,” Gold Newsletter Podcast.
- “How to Spot a Bubble,” Gold Newsletter Podcast.
- “Fed Unwinding Means Imminent Recession,” Gold Newsletter Podcast.
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