Snapchat CEO Evan Spiegel points out that people are making riskier investments. If that is the case, we should remember that it is by design. One outcome of negative and zero-percent interest rate policy is to push yield-starved investors into riskier territory. It’s already “mission accomplished” according to Speigel:
Snapchat has a monster valuation and relatively small revenue.
But Evan Spiegel isn’t afraid to say that we are currently living through a tech bubble, even if he and his Los Angeles-based company are taking advantage of it. The CEO of the popular messaging service said on Tuesday that it’s a matter of when, not if, the tech bubble will burst.
“I think that people are making riskier investments and … there will be a correction,” he said on the first night of the Code Conference in an interview with Kara Swisher and Walt Mossberg.
“[I]t’s definitely something we factor into our plans,” he added.
Spiegel said the investment bubble is being fueled by an “easy money policy” and low interest rates, which may not last a whole lot longer according to recent economic indicators. Those low interest rates are funneling investments toward stock markets, hedge funds and, yes, startups.
