The important question is: where is the money coming from?
If it's from hedgies flooded with investment from banks, then it's credit driven. In a zero interest rate environment banks are going to be desperate for yield. There's nothing zerohedgey about that, it's just financial system basics.
EDIT:
To clarify and put into textbook terms: in a good economic environment, there will be plenty of good projects to put investment dollars into. In a bad economic environment, credit contracts so there are less good projects but also less $s floating around. If you flood the market with credit in a bad environment, the same amount of $s you had in the good economy are chasing far fewer good projects.
Banks need to find yield so they take all the extra credit sitting around and pour it into hedge funds, VCs, etc. Those funds need to put the cash to work and so they pump up hot sectors to get their return. Bubble forms as valuations for companies like Facebook go through the roof. It's driven by the excess credit, ie. stimulus investment dollars that need to find a home.
If it's from hedgies flooded with investment from banks, then it's credit driven. In a zero interest rate environment banks are going to be desperate for yield. There's nothing zerohedgey about that, it's just financial system basics.
EDIT: To clarify and put into textbook terms: in a good economic environment, there will be plenty of good projects to put investment dollars into. In a bad economic environment, credit contracts so there are less good projects but also less $s floating around. If you flood the market with credit in a bad environment, the same amount of $s you had in the good economy are chasing far fewer good projects.
Banks need to find yield so they take all the extra credit sitting around and pour it into hedge funds, VCs, etc. Those funds need to put the cash to work and so they pump up hot sectors to get their return. Bubble forms as valuations for companies like Facebook go through the roof. It's driven by the excess credit, ie. stimulus investment dollars that need to find a home.