Facebook IPO will signal the beginning of a top?

Discussion in 'Economics' started by latinotrader, Jan 9, 2011.

  1. In the same way as dotcom IPOs signaled the 2001 crash, and Google IPO signaled 2008 crash?
  2. ugz


    don't you think that's an oversimplification regarding google, came out on 2004 and 2008 it was a housing debt bubble
  3. The point is tech companies tend to go on IPO near the top as they need an economy that APPEARS to be growing/recovering in order to get people to buy their shares in the IPO.
    Nobody would buy their shares near the bottom.
  4. wouldn't blackstone's ipo be more of an identifier of the last recession- i feel like they went public like a month before the top and are much smarter money than tech companies.
  5. You are missing the point

    IPOs tend to increase toward the top, and tend to be nonexistent near the bottom.

    It doesn't matter if they are tech or military companies
    Blackstone, google, dotcoms, and facebook
    all these IPOs are made by insiders so they can dump their shares into greater fools.
    Smart money are sensing they are near a top
  6. Locutus


    Been saying that for weeks. Not only this, but also insider selling, short commercial interests, the economy is not really recovering and the market has overextended itself way beyond what QE2 in itself would've caused in inflation, especially in commodities.

    We'd either need massive extra amounts of QE or an actually recovering economy to go any higher. Not saying it won't happen - the last reports have been somewhat hopeful (though nowhere near enough). The only way for agriculture to keep rising much is a massive global ecological crisis, otherwise producers worldwide are just going to pile on the trade shorting the market and increasing production (like they are already).
  7. We are far from the top. Economy is just recoverying, and average folks aren't in the market yet. Wait until the average folks are making a killing in the market, then we can start anticipating tops.
  8. http://lmgtfy.com/?q=when+was+google+ipo

    Yes, Google's IPO on Aug 19th 2004 caused the top in late 2007 and the crash at the end of 2008. It just took them 3 full calendar years to top out and another year to meltdown.

    Please don't post anymore without having a vague notion of what you're talking about.
  9. zdreg


    nonsensical dribble is what make ET an enjoyable read/ride. there are some gems that are posted and are extremely useful in pointing one in the right direction. don't expect to be handed a silver platter.
  10. When you see google being the highest priced company in the world you are sure you are near the top.
    #10     Jan 10, 2011