IPOS For Income Will Surge
Though 2020 was a rocky year for the stock market, the market continued to rebound and skyrocket higher. In December 2018 the market hit its peak and the smart money began leaving the market in large amounts.
Then on March 15, 2020: fed cut rates to zero which lead to March 16th, 2020 as the beginning of the real bear market. Indexes open below 9% and halted shortly after.
The tech sector was the saving grace of the stock market, and is now leading the way is IPOs.
Typically, when a private company goes IPO, it serves as a sign of good financial and business practices.
Companies use this method to grow their way into the stock market because of the quality of their work that’s reflected via their top and bottom-line.
But due to a weaker economy which was caused by this current global depression 2.0, instead of accepting income from traditional methods, companies will go public and derive income from stock investors instead.
This process is called “Financialization“; This is the process of money-making money from money without any productive activity needed at a high level.
Financial engineering decreases productivity and takes away the need for high paying jobs. When these middle to upper-middle jobs are destroyed the need for mental health solutions will skyrocket for this demographic.
In the modern world what a person does for a living is who they are as a person; work gives people a sense of purpose. And when that is gone they will need a replacement in order to function.
From SPACS to direct listings, get ready for a slew of tech centered firms to hit the stock market.