The Wile E. Coyote moment
He would run off the edge of a cliff, and continue running into midair. Only once he stopped, looked down, and realized that he was in midair, did he fall.
He thus gave the market the invaluable concept of a Wile E. Coyote moment, when investors realize they’ve been running without support for a long time, and prices that should have long since been gradually coming down suddenly collapse.
The laws of physics make what the coyote does impossible. But markets are driven by human nature and crowd psychology.
Coyotes can defy gravity for years in the markets — but generally there comes a point when the game is up.
And this week has seen the FANGs (the acronym for the huge internet platform groups that originally stood for Facebook, Amazon, Netflix and Google when coined) respond to gravity at last.
The market value of Meta has slipped by $676 billion this year
John Authers Bloomberg 28 oktober 2022
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