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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 w
by mdakin 20y ago
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.
- sharpshoot 20y agoIn 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?
- mdakin 20y agoThere 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.