, 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.
Demand Media! Facebook! LinkedIn! Dang-Dang! Everyone wants in on the next hot thing again.
Of the 54 analysts covering Apple, only one has a negative stance.
Chinese IPOs like Yoku and Dang Dang have done amazingly well.