Tesla and Netflix, as two examples, are high risk, high valuation, low fundamental stocks, with a classic technology bent (tech companies often get the benefit of a high valuation because it's believed by investors that they produce very outsized profit results eventually).
When money is cheap, it pursues high risk investments for outsized returns. Institutional investors in fact push for such, in a race to keep up with the returns their peers are seeing during periods of very large stock market gains. Investment funds pursue ever higher risk investments for higher returns, in a competition for capital. For the most part, all money and all investments compete in a global market place. Very few investors have the will power to sit on the sidelines while others are making fortunes riding bubbles (eg the late 1990s, 2004 > 2007).
The Fed's policies are specifically aimed at making money cheap right now (and they've succeeded; see corporations issuing debt at almost zero cost, such as AAPL and MSFT). Whether we're talking the cost of a mortgage, or the POMO shots boosting the stock market, or the indirect asset bubble effect from money chasing risk to compensate for the lack of interest yielded from cash, and on and on it goes.
When money is cheap, it pursues high risk investments for outsized returns. Institutional investors in fact push for such, in a race to keep up with the returns their peers are seeing during periods of very large stock market gains. Investment funds pursue ever higher risk investments for higher returns, in a competition for capital. For the most part, all money and all investments compete in a global market place. Very few investors have the will power to sit on the sidelines while others are making fortunes riding bubbles (eg the late 1990s, 2004 > 2007).
The Fed's policies are specifically aimed at making money cheap right now (and they've succeeded; see corporations issuing debt at almost zero cost, such as AAPL and MSFT). Whether we're talking the cost of a mortgage, or the POMO shots boosting the stock market, or the indirect asset bubble effect from money chasing risk to compensate for the lack of interest yielded from cash, and on and on it goes.