Is this really the fundamental idea behind equity investing at this point? My impression is that (a) dividends are becoming more rare and (b) the valuation of dividend-paying equities is not explained solely by dividend cash flow. Does anyone expect Tesla, Amazon, Google to start paying dividends?
The fundamental idea is buy low, sell high, right? Or has that just become the fundamental idea because so much of the market is now part of the same monopoly-money-fueled bubble?
Crypto, AI, green tech, alt meat, electric cars, space stuff… very few of these things are profitable in the traditional sense, so their valuations are instead predicated on the notion that the entire global economy will just flip a switch one day and become a tech utopia, ignoring the fact that the current infrastructure, supply chain and economic system took generations to build. People seem to have baked in the idea that billionaires and governments and greater fools alike will continue to pour money into this indefinitely, but what happens if/when it comes to light that “none of this scales”?