{"id":53,"date":"2021-12-08T16:54:13","date_gmt":"2021-12-08T16:54:13","guid":{"rendered":"https:\/\/www.rubinwealthadvisors.com\/rubinreport\/?p=53"},"modified":"2023-11-15T16:31:50","modified_gmt":"2023-11-15T16:31:50","slug":"the-patriotic-investors-dilemma-of-big-tech","status":"publish","type":"post","link":"https:\/\/www.rubinwealthadvisors.com\/rubinreport\/the-patriotic-investors-dilemma-of-big-tech\/","title":{"rendered":"Big Tech: A Patriotic Investor\u2019s Dilemma"},"content":{"rendered":"\t\t
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Big Tech: A Patriotic Investor\u2019s Dilemma<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Big Tech\u2019s recent strong stock performance and large size creates a conundrum for politically- conservative investors who want to align their core beliefs with their investments. Many conservative investors begrudgingly own these left-leaning companies due to not wanting to sacrifice performance.<\/p>

The reference to Big Tech companies includes the likes of Amazon, Google, Facebook, Twitter, and Apple, due to their recent collective efforts to censor free speech in America. Strictly speaking, they are all not tech companies. Yet in the eyes of the public, they are part of the Big Tech monopoly and will be considered as such for this article.

Is now the time to boycott ownership of Big Tech?<\/strong><\/p>

The First Amendment, which protects our freedom of speech and religion, is the bedrock issue that strongly unites all conservatives. These Big Tech companies are actively undermining our freedom of speech and are emboldened by the recently elected Democratic majorities. It is not only the liberal media, liberal CEOs, and campaign contributions that we have grown weary of, but Big Tech companies now have the power to suppress conservative voices, destroy companies, and deny conservatives access to the technological infrastructure that they monopolize. This includes access to e-commerce, cloud technology, credit card processing payments, and more. Big Tech has clearly demonstrated an unabashed and unrestrained willingness to use their power to economically influence those they disagree with. If these companies continue to run roughshod over the conservative beliefs of their shareholders, the silent majority will become the silenced majority in short order.<\/p>

Results from a\u00a0recent Gallup poll<\/a>\u00a0conducted earlier this year show positive views of Big Tech have fallen 12 percent since late 2019, and the majority of poll respondents want more government regulation of technology companies. Given the customer centric business models and rapid growth necessary to justify recent valuations, how can this level of dissatisfaction not affect the bottom line? Big Tech executives fail to realize that the implementation of liberal-leaning policies may result in lost revenue, a growing opportunity for potential new competitors, and vulnerability to government anti-trust actions.<\/p>

Certainly, the general market environment should be considered and there are warning signs that Big Tech\u2019s run cannot last forever. First, the massive economic stimulus is nearing an end. An article recently published by Bank of America, titled\u00a0Big tech-led equity inflows fueling \u2018mother-of-all asset bubbles\u2019<\/a>, states that, \u201cThe U.S. Federal Reserve for instance has been purchasing bonds at a record pace, doubling its balance sheet to nearly $8 trillion in less than a year. During the same period, the five biggest tech stocks have seen their market value double.\u201d<\/p>

The U.S. Federal Reserve for instance has been purchasing bonds at a record pace, doubling its balance sheet to nearly $8 trillion in less than a year. During the same period, the five biggest tech stocks have seen their market value double.<\/p>

Second, certain technical evidence, such as drastic increases in P\/E ratios over the last year and growth\u2019s dominance over value dating back several years, has created a paradox for value investors who are having their long-term underlying assumptions challenged by these factors. The last time Big Tech was this high as a percentage of the S&P 500, was 1999. Everyone should recall the dotcom bubble burst of 2000, which was signaled by prevailing astronomical valuations and P\/E ratios of tech companies. Today\u2019s market environment is eerily familiar in that regard, and history tends to repeat itself.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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