Nathan Anderson on tech bubble 2.0: "I view it as a state-sponsored mess of stupidity of sorts"

We’re in a market where there’s so much liquidity sloshing around, and so much of the retail investment is in hype-fueled industries, that it has attracted and enriched just about every stock promoter capable of telling a basic story. 

A lot of this is fueled by never-ending Federal Reserve liquidity. So the Fed has come in and largely put a bid under everything. Whenever you print trillions of dollars of new money, at any given point there’s a finite number of Treasury bills and high-quality instruments, whether corporate bonds or stocks, and you can bid up multiples to a certain point. But it seems that eventually that money flows into highly speculative names, and what that’s led to is the Nasdaq ripping past new highs, behind a lot of money that’s really going into just about any speculative tech stock with potential. I view it as a state-sponsored mess of stupidity of sorts.

~ Nathan Anderson, "Nikola Short Seller Hindenburg Research Wants to Oust Bad Actors From the Market," Barron's, September 26,2020