Comment by yaih

Valuation and share prices of FAANGs (and Microsoft) started really taking off 2-3 years after the financial crisis of 2008. There are two theories: a lot of money could suddenly be borrowed at near zero cost and needed a place to go, prompting a lot of investors to invest in big tech in the hope of better than average returns. Alternate theory: all big tech companies just simultaneously, suddenly became lot better companies and lot better investments sometime around 2011. I tend to side with the first theory.

Recently, it also became easier to do stock buybacks, leading to another big bounce in share prices.

https://edition.cnn.com/2018/12/17/investing/stock-buybacks-...

So I wonder if the real problem lies elsewhere - the out of control monetary policies practiced by various central banks.

Or maybe my statements are just completely wrong. If so, I would like to know if someone has done any kind of analysis on this.