All in opinion:
Wall street have themselves to blame. For too long greedy investors have binged on cheap money and help fuel in my eyes one of the biggest tech bubbles in the history of man. Mania indeed and sense for investors has gone out the window. It's huge folks and in my eyes unsustainable. Far too many tech unicorns some which barely scrape a profit while you have the once untouchable global giants falling from grace pushing the boundaries of capabilities attempting to meet increasing expectations from investors and consumers. The pendulum has simply swung to far and is coming back in a big way. Tech Short heaven folks. Those who fight it will be come out second best. Those companies who go with the flow and use the time to consolidate, optimise, cost cut and re-evaluate will survive and thrive just like the Aussie miners did such as AGO.
Economic evolution folks.
Bitcoin
We have bitcoin which has been diluted into over 200 versions of themselves (each one is better they say. Yeah right). Now, its tanking and for good reason. It will find a bottom....eventually....
Don't get me wrong, the tech is useful and whoever can best survive this realistic normalisation process will win. I just don't want to be that mum and dad investor holding an empty beer can in the end with unrealistic expectations of neverending capital gains on paper.
Reflect back when before the dot com crash, we had many search engines. Now reflect on how many search engines remained after the crash. Yep. That's what will happen with Bitcoin.....
Not at one time I can remember analysts talking about any form of over supply of such a phenomenon. Eg the fact that it's spawned so many versions of themselves (yet it seemed some analysts still mentioned an over supply of physical commodities, 1 year after in my eyes the tsunami supply glut ended). To me the market has been distracted by bullish equity euphoria out of the GFC......ride the equity and tech bubble to a point where its dreamlike and BAM you wake up. It's turned...and quickly... The real value is with unloved physical commodities and the global market is beginning to wake up. Little old AGO could very well be a standout winner from this movement of investor money.
Tech stocks.
FANGG. Come on America, far too much money is in these few giants. Wall Street and global investors have probably helped this tech bubble inflate and for years it was almost default to invest in tech. No wonder why indexed commodities haven't been this low historically since the great depression vs equities. It's because Wall Street and the globe, forgetting out commodities have been riding the high on tech stocks and investors have milked this QE fueled extravaganza for too long. Move on folks. I get the feeling America has been too complacent and is having a OMG moment and can't get a grasp that its market is finally having a much needed breather and that they DO come down. It's normal, its history repeating and those who adjust to market conditions will profit nicely from a rotation out of tech into good old solid commodities. If US attempt to prop up the tech bubble it will eventually catch up biting them in the butt in the not to distant future. What do they say the bigger they are the harder they fall. It's needed folks, the market in my eyes is not balanced. Too much emphasis on tech. Trump for very good reason is protecting its manufacturing with tariffs to help stimulate a local market which needs to be ramped up for the sake of America. This is a sign money will flow from geeksville to hardyakkasville. It's time for the world to get lift their heads from their phone, to look up and yell "God bless America" and start building a better, cleaner America and world. Get your hands dirty folks. Reinvent again. Tech will support the transition also. Build. Otherwise America will end up a dusty old consumerism world reflecting of what was rather than what could be. Get up, rotate that money folks and let's get a move on. This tech extravaganza will return again, once the world has time to take a breather, to reflect, to think of new ideas and come out bigger, stronger and more enlightened into the future. In my eyes, Tech is going stale and like an old Anzac biscuit, you toss the stale ones, eat what you can and give to your mates and bake another fresh few in the future. Nothing lasts forever, not even tech euphoria...
God bless America....
God bless commodities....
God bless AGO....
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