Tech Feelings

November 16, 2022

Following on from comments about tech in the last note about cost control.
Magnifying glass truly on US tech now and we're about to see big cuts
Brief anecdotal comments from friends & family who work in various tech firms across the US
- Share price falls across the board has really cut salaries, is starting to become a focus for many especially after the most recent earnings
- Everyone is on edge, no one knows who is going to get cut and everyone knows that cuts are coming from next week onwards
- Firm belief that the US is already in a recession
- (Recession call is bearish but is consistent across anyone in tech I know. Reflects a world knowing their job might get cut)
Microsoft holding up decently, one of few mega-cap tech cos that has seen it all through previous cycles. They understand cost control.
Focus on cost control + potential inflation slow-down – recovery in tech stocks?
Though increased unemployment in high-income earners I think is incredibly bearish for the US.

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