13 Glaring Signs That The Market Is Forming Another Huge Bubble


, via Wikimedia Commons” url=”http://upload.wikimedia.org/wikipedia/commons/5/53/Traubensaft_Schaum_1.JPG”]They’re adding up!More and more we’re seeing signs that the market is in a bubble that will have an ugly end.

The evidence is both anecdotal (everyone talking about IPOs and ignoring bad news) and quantifiable (collapsing volatility). Other things like reverse mergers, love for exotic investments, and penny stocks are also telltale signs.

Of course, how and when it ends is unclear.

You can correctly identify a bubble and lose boatloads of money waiting and waiting and waiting for it to burst.

And when they get tripped up early, they’re not that big of a deal.

Everyone is bullish

Levels of bullishness are near all-time historical highs.

Everyone's going tech IPO crazy again

Demand Media! Facebook! LinkedIn! Dang-Dang! Everyone wants in on the next hot thing again.

Raising money from VCs for tech startups has never been easier.

You've heard about that one, right?

Volatility is dead

Have you looked at the VIX lately?

Bad news is being ignored

Have you looked at the last two big jobless reports? They were crap, and nobody cared.

Even specific companies are ignoring bad news

Bank of America is doing just fine despite negative mortgage ruling.

Analysts can't even form bearish arguments

Of the 54 analysts covering Apple, only one has a negative stance.

Shares of Sotheby's is back close to all-time highs

This is a classic sign of trouble.

Shell companies are back

A crappy investment vehicle that was big pre-bust is back. The latest news is that a cupcake company is going to go public using one.

Companies are seeing big price jumps merely by splitting up

Suddenly CEOs are getting really into 'unlocking value.'

Today Marathon Oil is surging because is breaking into two.

Yesterday it was ITT that spiked after splitting into three.

Nosebleed valuations

Stocks like Netflix and Opentable are being priced for absolute perfection.

Investors are going crazy for foreign stocks

Chinese IPOs like Yoku and Dang Dang have done amazingly well.

Penny stocks are going nuts thanks to celebrity tweeters

Did you see the 50 Cent news this week?

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