Two Geysers of Pent-Up Wealth Are About to Erupt
Tech companies’ IPOs will unlock value that insiders will spend and invest, just as homeowners are tempted to tap into a decade of equity.
A sign of spending to come.
Photographer: Mike Coppola/Getty Images
Everything is coming together this year for households to shake off their post-recession fears of financial engineering. The question is whether they will once again embrace debt and leverage.
One catalyst for a wave of spending and borrowing is the potential of a record year for initial public offerings as large numbers of private tech companies like Lyft and Uber finally hit the public markets. Companies are looking to go public not just because the timing is right in the evolution of their companies, or just because market conditions are favorable, but also because to some extent because there’s a herd effect once a few noteworthy companies start to go public.