Posts filed under “Psychology”
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
chart courtesy of BigCharts.com
The WSJ 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, withthe top coming in the November December time period.
We have been watching, with no small degree of skepticism, a stream of improving Macro-economic data. Color us unconvinced. Many of the key releases have been fraught with misleading headlines obscuring much weaker data beneath, and last month was no different. From Inflation to Federal Deficit to Unemployment Rates to Industrial Output to recent GDP…Read More