Re:Are we in a bubble? Your thoughts
by mdakin on Friday April 13, 2007 @05:40PM
(#12728)
No. A bubble happens when you have a huge number of trades at prices well above the fundamental value of items being traded. In this case I assume the items we're referring to are "small, internet-oriented companies". At least right now there is not a high enough volume of trades happening to drive prices up into the astronomical range characteristic of a bubble.
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Re:Are we in a bubble? Your thoughts
by sharpshoot on Friday April 13, 2007 @05:51PM
(#12734)
In this instance if we consider the variable the number of investments being made into internet startups are we seeing bubble like behaviour? Are valuations much higher now (artificially so - post youtube etc) than before? Is this leading to herd-like behaviour both in entrepreneurs looking to create opportunity and investors chasing deals?
There might be some deals going on in anticipation of a bubble. Sort of hedge deals being made to guarantee a spot on the leading edge of some hypothetical bubble. But I don't think all the deals fall into that category and many of them are pretty legitimate investments and at fair prices.