The re-thinking has already begun. It’s a form of scientific revolution.
Mega-Startups go parabolic. Flame-out already happening.
Weighed down by soaring debt, it declares bankruptcy. Stock loses 92% in one day. From $20 to $0.80 in 3 months. A harbinger.
Party turns into bloodbath. Happening right now beneath the surface of the S&P 500.
They buy near the top and sell near the bottom, getting fleeced at each market swoon. With broader consequences.
It’s the rapidly growing risk premium, not the drop in earnings that investors bring on when they suddenly flip from giddy to fearful.
They indicate “an inflection point,” as they did in 2008 and 2011. Even relentlessly exuberant VCs are warning.
What’s left is a toxic mix: dropping sales, still rising prices, ballooning inventories.
In the past, they were early, but they were right.
The inevitable end of the dollar’s hegemony has consequences.