[quote=livinincali]
For the private equity investors in FB before it went public they probably did have thousands of percent returns. Tech companies these days aren’t going public as early as they did in the past. Goldman Sacs probably has tons FB stock that translates to a dollar or less when they were early investors.
It’s the valuation that matters not how much something has gone up. It’s it a bubble if the valuation doesn’t make any sense. Not whether it went up 1000% or 100%.
Look at CYNK. It has no revenue. It’s based in Belize with want I can tell is one employee and it’s gone from 0.06 to 9.74 in less than a month. That’s only a 16100% percent return.
I know the stock market is in a bubble. I do not know when it’s going to pop. I fully expect most people to fail to exit at or near the top even though they all think they’re smart enough to get out at the top. It’s just the nature of a bubble. If you think you’ll know the exit point is when TWTR goes up 1000% good luck. I doubt that’s going to be the signal for the top this time around.[/quote]Most of .com stocks in the 90s have negative earnings and very little revenue. It was all vapor wear. Which is why most of them went away. Yet, they still went up thousands of % in a very short period. This is thousands of % increase for your average retail investor, not private equity. I’m sure private equity back then made an even larger killing.
Yes, I agree with you that stock is not cheap today. But I disagree with the comparison of today vs the 90s. It’s still a long way away to get to 90s level bubble. Maybe today is like 96-97, expensive but not quite bubbly like 99-2000.
I never said anything about timing the top of the market. What I said is, you know you’re in a 99-00 level bubble is when everyone and their dogs are talking about buying stocks and giving stock tips.
