Stock Market Bubble
Silicon Valley Insider: ‘If 2000 Was A Bubble Factor Of 10, We Are At A 9 Right Now’
Facebook bought revenueless Instagram for $1 billion in 2012. Snapchat, the revenueless sexting app, is now valued at $10 billion. There are so many examples like this.
Record S&P 500 Masks The Fact That 47 Percent Of Nasdaq Stocks Are Mired In Bear Market
About 47 percent of stocks in the Nasdaq Composite Index are down at least 20 percent from their peak in the last 12 months while more than 40 percent have fallen that much in the Russell 2000 Index and the Bloomberg IPO Index. That contrasts with the Standard & Poor’s 500 Index, which has closed at new highs 33 times in 2014 and where less than 6 percent of companies are in bear markets, data compiled by Bloomberg show. The divergence shows the appetite for risk is narrowing as the Federal Reserve reins in economic stimulus after a five-year rally that added almost $16 trillion to equity values.
