Friday, October 23, 2009

IPO Trough Worse Than Dot-Bomb Drought

There is even more reason to believe that this phantom recovery is fake when its IPO revival produces less of a pop than the drought that followed the dot-com implosion:

Initial public offerings in the U.S. are suffering the worst returns since at least 1995 at the same time that the stock-market rally is spurring the most new listings in almost two years.


Investors need to be absolutely certain that they have iron-clad reasons to buy equities given current valuations. Articles like this can reinforce confirmation bias for bears like me, so of course I've also noted that this week's earnings announcements have given the market some positive earnings surprises.