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More Signs of the Coming Denouement

Posted By Barry Ritholtz On August 5, 2005 @ 4:44 pm In Investing,Psychology | Comments Disabled

Baidu.com’s (BIDU) IPO, billed as China’s answer to Google, was up fourfold today from its $27 offering price. It broke $150 intraday.

For anyone who has been wondering if we are getting frothy in the markets, here’s your answer:

click for larger chart

Bidu [1]

chart courtesy of BigCharts.com

The WSJ [2] reported that this was "the biggest first-day gain since the heady days of the dot-com boom," and noted that to find a comparable debut, "it’s necessary to go back to the last leg of dot-com hysteria."

While this doesn’t mean that the market comes to end next week (and it better not, because I’m traveling), it is hardly a sign of thoughtful contemplative investing by cool headed, unemotional traders.

If anything, this further confirms my negative market perspective into 2006 [3], withthe top coming in the November December time period. 

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/08/more-signs-of-the-coming-denouement/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/bidu.gif

[2] WSJ: http://online.wsj.com/article/0,,SB112324829427106079,00.html?

[3] negative market perspective into 2006: http://www.smartmoney.com/theproshop/index.cfm?story=20050602

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