Tesla and co. are soaring
The share prices of well-known tech giants, such as Amazon, Apple, Facebook, Netflix and Tesla, give no indication that we are in a global recession. The prices of the ten companies in the FANG+ index – which includes the two Chinese Internet giants Alibaba and Baidu, in addition to the equities mentioned above – have almost doubled since March. Prices rose especially sharply again last month.
The performance of these equities is typical of current developments on the stock exchanges. It is not optimism about the economic situation that is driving prices up, but rather the lack of alternatives, the search for the winners of the future and the fear of losing out on equity price gains. In fact, professional investors do not appear to be particularly optimistic. According to the monthly survey carried out by the American Association of Institutional Investors, only 30 percent expect significant price rises over the coming months. The percentage of optimists was not much lower during the stock market crash in the spring.