13 Glaring Signs That The Market Is Forming Another Huge Bubble

bubble

[credit provider=”By böhringer friedrich (Own work) [CC-BY-SA-2.5 (www.creativecommons.org/licenses/by-sa/2.5)]

, 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.

[slideshow]
[slide
permalink=”everyone-is-bullish-1″
title=”Everyone is bullish”
content=”Levels of bullishness are near all-time historical highs.”
image=”http://static.businessinsider.com/image/4d2cd307ccd1d56f511b0000″
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[slide
permalink=”everyones-going-tech-ipo-crazy-again-2″
title=”Everyone’s going tech IPO crazy again”
content=”Demand Media! Facebook! LinkedIn! Dang-Dang! Everyone wants in on the next hot thing again.”
image=”http://static.businessinsider.com/image/4d263242cadcbbca3c010000″
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[slide
permalink=”raising-money-from-vcs-for-tech-startups-has-never-been-easier-3″
title=”Raising money from VCs for tech startups has never been easier.”
content=”You’ve heard about that one, right?”
image=”http://static.businessinsider.com/image/4c49afd37f8b9a1b0f120300″
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[slide
permalink=”volatility-is-dead-4″
title=”Volatility is dead”
content=”Have you looked at the VIX lately?”
image=”http://static.businessinsider.com/image/4d2f0cc54bd7c8fa762d0000″
caption=””
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]
[slide
permalink=”bad-news-is-being-ignored-5″
title=”Bad news is being ignored”
content=”Have you looked at the last two big jobless reports? They were crap, and nobody cared.”
image=”http://static.businessinsider.com/image/4c8e2dca7f8b9abb64110300″
caption=””
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[slide
permalink=”even-specific-companies-are-ignoring-bad-news-6″
title=”Even specific companies are ignoring bad news”
content=”Bank of America is doing just fine despite negative mortgage ruling.”
image=”http://static.businessinsider.com/image/4cac97ae7f8b9a2568e40100″
caption=””
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[slide
permalink=”analysts-cant-even-form-bearish-arguments-7″
title=”Analysts can’t even form bearish arguments”
content=”Of the 54 analysts covering Apple, only one has a negative stance.”
image=”http://static.businessinsider.com/image/4d2f0f4fccd1d515260c0000″
caption=””
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[slide
permalink=”shares-of-sothebys-is-back-close-to-all-time-highs-8″
title=”Shares of Sotheby’s is back close to all-time highs”
content=”This is a classic sign of trouble.”
image=”http://static.businessinsider.com/image/4d2f0d4949e2ae187a0b0000″
caption=””
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]
[slide
permalink=”shell-companies-are-back-9″
title=”Shell companies are back”
content=”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.”
image=”http://static.businessinsider.com/image/4ad779260000000000a7bba0″
caption=””
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]
[slide
permalink=”companies-are-seeing-big-price-jumps-merely-by-splitting-up-10″
title=”Companies are seeing big price jumps merely by splitting up”
content=”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.”
image=”http://static.businessinsider.com/image/4c503dfa7f8b9a4b47810600″
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[slide
permalink=”nosebleed-valuations-11″
title=”Nosebleed valuations”
content=”Stocks like Netflix and Opentable are being priced for absolute perfection.”
image=”http://static.businessinsider.com/image/4cc8912f4bd7c8ce6c030000″
caption=””
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[slide
permalink=”investors-are-going-crazy-for-foreign-stocks-12″
title=”Investors are going crazy for foreign stocks”
content=”Chinese IPOs like Yoku and Dang Dang have done amazingly well.”
image=”http://static.businessinsider.com/image/4d120eaccadcbb4a6f140000″
caption=””
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]
[slide
permalink=”penny-stocks-are-going-nuts-thanks-to-celebrity-tweeters-13″
title=”Penny stocks are going nuts thanks to celebrity tweeters”
content=”Did you see the 50 Cent news this week?”
image=”http://static.businessinsider.com/image/4d276fe8cadcbbf424190000″
caption=””
credit=””
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]
[slide
permalink=”now-for-some-reality-14″
title=”Now for some “reality””
content=”Click here for David Rosenberg’s presentation on why US equities are doomed >
image=”http://static.businessinsider.com/image/4d10dc0b49e2ae8c3c580000″
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[/slideshow]