For some investors it's feeling like 1999 again with a combination of slow economic growth and Tech stocks soaring
For some investors it's feeling like 1999 again with a combination of slow economic growth and Tech stocks soaring. Some hot tech stocks, including Tesla, Netflix, Priceline.com and Google are up as much as 470% over the past year. Linkedin is up 140%, Facebook 110% and Twitter is about to IPO in a frenzy. It's fascinating to me that today's mini-mania includes shares of Amazon, Netflix and Priceline that have previously peaked and crashed before-in some cases they've peaked and crashed twice says Darren Pollock, portfolio manager at Cheviot Value Management. We're skeptical that there is enough underlying intrinsic value to many of the highfliers to support today's prices. You don't see an explosion of IPOs like this at market bottoms, he says.Bull markets peak when speculation centers around a narrowing number of highfliers amidst elevated share issuances by companies and expanded use of margin debt. We have all three.
4 topics