Changing times (or, why is every layoff 10-15%?)
blog.eladgil.com · 3,383 words · saved by 3 readers
Changing economic markets suggests a shift in how some companies should operate, as well as what risks to assume for 2023
In 2019, tech and software multiples hit all times high. After 10 years of quantitative easing and lowered interest rates, many did no think tech company multiples could go any higher. Then COVID hit and the government took unprecedented monetary policy action by dropping interest rates to ~zero, expanding the federal balance sheet by buying assets, and printing trillions of dollars to provide money drops to large swathes of the US population affected by the rushed and unprecedented COVID lockdown policies. A number of these macro financial engineering approaches continued even post…
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