In the Era of Risk Amplification and Oblivious Consumption Drones
A Y2K equity meltdown and Lehman credit melt-down both at the same time. That gives a mild approximation of today's systematically amplified and ignored risk.
The Lehman Indicator(s) were featured here.
Below are the Y2K Indicator(s):
ALL IN: Margin Debt Back at All Time High
NYSE Margin w/Nasdaq
Tying two rocks together to see if they float:
Today, a current-era DotCom, Zillow, bought Trulia for $3.5 billion. Both companies are running significant losses. Zillow has a price/sales ratio of 28, which is high for a P/E ratio, let alone a P/S ratio. The acquisition value of $3.5 billion equates to over half of Zillow's market cap, and usually that would cause the stock to go down, a lot. Not in this casino:
Piling more junk onto the ETraders
Meanwhile, ZH reports that there will be no less than 25 IPOs next week. The highest number of IPOs for a single week since Y2K. To put this figure into perspective, in 2011, there were 125 IPOs for the entire year. IPO pricings are running 50% higher than last year, by volume.
Below are charts of companies still around from the Y2K Era:
Microsoft with Nasdaq 100 in the background
Below are the Y2K Indicator(s):
ALL IN: Margin Debt Back at All Time High
NYSE Margin w/Nasdaq
Tying two rocks together to see if they float:
Today, a current-era DotCom, Zillow, bought Trulia for $3.5 billion. Both companies are running significant losses. Zillow has a price/sales ratio of 28, which is high for a P/E ratio, let alone a P/S ratio. The acquisition value of $3.5 billion equates to over half of Zillow's market cap, and usually that would cause the stock to go down, a lot. Not in this casino:
Piling more junk onto the ETraders
Meanwhile, ZH reports that there will be no less than 25 IPOs next week. The highest number of IPOs for a single week since Y2K. To put this figure into perspective, in 2011, there were 125 IPOs for the entire year. IPO pricings are running 50% higher than last year, by volume.
Below are charts of companies still around from the Y2K Era:
Microsoft with Nasdaq 100 in the background
Perfect timing in Y2K, as one would expect, since at the time it was the most heavily weighted company in the NDX by market cap:
Priceline
Peaked way before the market then, and looks to be a bit ahead now:
Ameritrade
Almost a full year early in Y2K; looking wobbly now...
Amazon
The stock that inspired this post. Currently still trading at a P/E Ratio of 500+
Peaked several months early, then and now...
Qualcomm
Good timing then. Now?
Biotech Sector ETF:
Peaked concurrent with the market in Y2k, looks to be a bit early this time around...
Apple
No Comment
Look at these charts above circa 2007 i.e. all far lower than today. The Financial Crisis was a mere hiccup.
Feeling lucky?
