Twitter Updates

    follow me on Twitter

    « Is Facebook's Open Graph A Master Stroke? | Main | Are You The Master Of Your Own Domain? »



    I think it's a sign of a huge bubble -- the entire stock market is inflated at the moment. Just look at multiples -- it's P/E ratio is around 75.

    There is a tremendous asset bubble fueled by "carry trade" -- i.e. because Fed's interest rate is so low, traders are borrowing money and invest in the stock market. The rising stock price gives companies opportunities to make acquisition.

    Given the weak economic fundamentals, things will come back to earth.

    The comments to this entry are closed.