1.Small Cap Stock Beat Down….Russell 2000 Small Cap Goes Negative for the Year and Breaks thru 200 day to Downside.
IWM Russell Small Cap-Closes Below 200day on Good Volume.
An index tracking business conditions for U.S. private companies surged 44 percent from a year earlier.
August 11, 2017, 8:00 AM EDT
There’s rarely been a better time for American technology startups.
The Bloomberg U.S. Startups Barometer, which tracks the business conditions for U.S.-based private technology companies, reached a record high. A 44 percent increase from a year earlier was driven by a surge in the number of businesses that raised money for the first time, reflecting investors’ appetite to back the riskiest companies. The index, which goes back to 2007, doesn’t account for the frenetic days of the dot-com bubble.
“If you’re leaving Google or Facebook to go do your startup, this is probably the best time ever to do so,” said Wesley Chan, managing director at the venture capital firm Felicis Ventures. “There’s a lot of frothiness in early stage and seed investing.”
The Bad News Buck
The dollar has declined against every major currency in 2017, and is down 11% against the euro, 6% against the yen and 5% against the pound sterling.
The buck has declined against every major currency in 2017; it’s down 11% against the euro, 7% against the yen, and 5% against the pound sterling. This boosts U.S. exports, pads the buying power of visitors, and has widespread impact in the stock market: Technology companies’ strong sales, nearly 60% of which are earned abroad, look even stronger when translated back into dollars. The 50 stocks in the Standard & Poor’s 500 index with the most overseas revenues surged 13.8% in the first half, versus 1.3% for the 50 with the most domestic sales, notes Bespoke Investment Group.
See my blog post on comparisons to 1999
This long-running hot streak in the tech sector has led to forecasts of another 1999 bubble. It has sparked future doom from a host of soothsayers, who have been waiting for their gloomy predictions to come true since the global financial crisis ended in 2009. Since the crisis, today’s Wall Street Masters of the Universe are not the traders popularized in Michael Lewis’s original book “Liars Poker.” Nor are they the superstar investment bankers of the Internet boom. Instead, they’re a bunch of unknown hedge fund managers that predicted a crash in 2008 and made a fortune in its aftermath. Since that event, headline grabbers on Wall Street have shifted from tireless cheerleaders of the rising bull market to pessimists predicting the next crash.