Bubble time !

It may take a year, or it may take five, but there is no longer a doubt. We are seeing an inflating bubble. A Motley Fool's recent article drew my attention to UBS's announcement about the creation of an exchange traded equity which focuses solely on the recent Internet IPOs. Yup. An investment machine aiming at companies like Facebook, Groupon, and others. You don't have to accept my doubts regarding Facebook's value (even at the face of Facebook's reaction to Google+), You don't have to accept my skepticism regarding China, or my skepticism regarding financial institutions and banks. You even don't have to wonder about the business model of this ventures, and inspect  such issues as  whether they really have where to expand to.

You just have to think about this new note.

Investing only in companies that have not shown stability or real profits. Limiting your investment to companies that belong to the same branch as Myspace, a branch where you can be king and loser within 5 years, and not reaching a single year of profitability. Investing in companies that are promises but definitely not sound investing. This is so 90's dot.com bubble, I just can't understand how anyone can actually  buy such an idea. Sellers, after all, will always come to the potential buyers. But how can it be that buyers do not beware ? 


פוסטים פופולריים מהבלוג הזה

מה הופך צוותים לטובים?

לקצץ את תקציב הסלולר של הח"כים?