FT: When investors are complacent, stupid deals happen

Source: FT



Last week, I pointed out some statistical errors in a chart suggesting that Rupert Murdoch’s bid for Time Warner was a sign of the market’s top. The chart had enough omissions to render it useless.

Today, I want to show you a (slightly) better version of the same idea.  Continues here



Category: M&A, Markets, Sentiment

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Does Increased M&A = Potential Market Top ?”

  1. rd says:

    I think a chart like this would have to go back to at least the early 1980s when Mike Milken et al initiated the modern M&A era using junk bonds and other financing mechanism.

    The big question I have about the current M&A acceleration is if this is the only way that companies can conceive of raising their EPS today. They appear willing to buy other companies but not willing to invest in their own these days as capex is still at a fairly low level.