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What are the odds of another tech crash coming?

Posted on 6/27/24 at 8:08 am
Posted by TDsngumbo
Member since Oct 2011
49222 posts
Posted on 6/27/24 at 8:08 am
If China decides to take Taiwan after the election (assuming Biden wins/cheats), I can see the tech sector suffering for a bit while the industry tries to figure out what to do about the chip shortage. Am I ignorant here or is this a real possibility?
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
40326 posts
Posted on 6/27/24 at 8:27 am to
Why is China waiting until after the election?
Posted by VolSquatch
First Coast
Member since Sep 2023
7704 posts
Posted on 6/27/24 at 8:38 am to
I don't think China is in a hurry here. In all likelihood neither of the candidates debating tonight will be president if/when that occurs.
Posted by TDsngumbo
Member since Oct 2011
49222 posts
Posted on 6/27/24 at 8:40 am to
quote:

Why is China waiting until after the election?

Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
40326 posts
Posted on 6/27/24 at 8:46 am to
Why haven't they tried to take taiwan at any point in the last 3.5 years?


You seem to think they need Biden to be president for them to feel confident invading Taiwain. Biden is president now. Why are they waiting until after he may no longer be president?
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57977 posts
Posted on 6/27/24 at 8:53 am to
If/when China takes Taiwan, the industry has already started moving to other countries (Japan and SK, primarily) so the hit will likely not last as long as many fear as those facilities (and others) ramp up to make up the loss. I'm not saying it won't hurt (new car sales, for example) but it will likely resolve itself within 3-5 years.

The closest thing tech has to an incoming crash is the boom/bust cycle of hiring moving into the "bust" category as tech companies begin to divest themselves of excess positions. Prolonged high inflation and high consumer debt-creation (at historically high interest rates, in some cases) has started eating into tech consumption so they have been cutting excess positions (the longer this last, the more we will begin seeing this in other industries as well).

AI is proving to not be the panacea to the world's ills (see also: EVs) like the proponents had been promoting, but it's still strong. We may see the industry slowly deflate instead of crash (as there is definite utility there) from that.
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 6/27/24 at 9:08 am to
quote:

What are the odds of another tech crash coming?

If China decides to take Taiwan


You’re asking about a single tree (sector), when that scenario would actually affect the entire forest.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
51556 posts
Posted on 6/27/24 at 9:10 am to
quote:

If China decides to take Taiwan


Are you thinking China would invade Taiwan with military force? Rather than using monetary and political pressure?
Posted by boomtown143
Member since May 2019
9407 posts
Posted on 6/27/24 at 9:16 am to
It will happen....at some point in the future.
Posted by slackster
Houston
Member since Mar 2009
91362 posts
Posted on 6/27/24 at 10:04 am to
The odds of a tech crash are 100%.

The “when” is the question you should be asking?
Posted by fallguy_1978
Best States #50
Member since Feb 2018
53115 posts
Posted on 6/27/24 at 10:56 am to
We are probably in a mini tech bubble, but I don't think it's anything like the .com era. A lot of those companies didn't make any money.

Most of these companies are wildly profitable, they just seem to be a little over their skis from a valuation standpoint.
Posted by Big Scrub TX
Member since Dec 2013
38521 posts
Posted on 6/27/24 at 11:51 am to
quote:

The closest thing tech has to an incoming crash is the boom/bust cycle of hiring moving into the "bust" category as tech companies begin to divest themselves of excess positions. Prolonged high inflation and high consumer debt-creation (at historically high interest rates, in some cases) has started eating into tech consumption so they have been cutting excess positions (the longer this last, the more we will begin seeing this in other industries as well).
I agree with this. Some of the big companies almost seem to be running charities for their employees. We watched Twitter lay off like 70% of their "workers" - and the sky didn't seem to fall (despite media predictions of such). I think we will see a lot of layoffs (especially older employees).

But actual earnings are just too crushing for a price crash, IMO. Sure, maybe valuations can come down.

quote:

AI is proving to not be the panacea to the world's ills
Not a panacea, but they ain't stopping.
Posted by FinleyStreet
Member since Aug 2011
8000 posts
Posted on 6/27/24 at 12:07 pm to
I could be wrong, but if China takes Taiwan, I don't think tech stock performance is at the top of the list of things to worry about.
Posted by Big Scrub TX
Member since Dec 2013
38521 posts
Posted on 6/27/24 at 2:41 pm to
quote:

I could be wrong, but if China takes Taiwan, I don't think tech stock performance is at the top of the list of things to worry about.
China won't be taking Taiwan
Posted by LSURussian
Member since Feb 2005
133660 posts
Posted on 6/27/24 at 7:05 pm to
quote:

What are the odds of another tech crash coming?
22.837513368%
Posted by Big Scrub TX
Member since Dec 2013
38521 posts
Posted on 6/27/24 at 11:06 pm to
quote:

3.5000000%


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