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There are profitless companies far beyond Silicon Valley. One market expert explains how they're a lethal factor setting the market up for a meltdown.

There are profitless companies far beyond Silicon Valley. One market expert explains how they're a lethal factor setting the market up for a meltdown.
Reuters / Jianan Yu



Vincent Deluard, the director of global macro strategy at INTL FCStone, says some of Silicon Valley's worst traits are popping up in other areas of the marketplace.




He notes the flood of companies that haven't been able to turn a profit, even in a highly favorable economic backdrop characterized by loose lending conditions.




Deluard thinks "all the ingredients" are in place for a meltdown.




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Silicon Valley unicorns are in the spotlight for all the wrong reasons.
Imprudent cash burns, massive debt piles, and business models that "may not achieve profitability" (Uber) or "elevate the world's consciousness" (WeWork) top the list of the more outlandish attributes these companies possess.
As investors, we like to think that pockets of market turmoil are generally sequestered and free of contagion. But that's not always the case.
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