Dear Reader,
Recently, several analysts have forecast that the wave of IPOs signals the top of the US stock market. On several occasions this was true in the past. When valuations are inflated, companies tend to use the favorable situation to raise capital.
Alibaba was the largest IPO ever and it went quite well. Personally, I believe we are close to 10-15% US stock market correction. The state of the US economy simply does not support some of the technology companies' valuations.
BRICS are another matter. The common wisdom is that the Federal Reserve tightening of US monetary policy will hurt those markets. I expect that 'this time it will be different'. Brazil, Russia, India,China and South Africa are simply too big this time and they will attract capital in their own right.
Disclaimer: This article is provided solely for informational
purposes, and does not constitute an offer or solicitation to buy or
sell any securities. The opinions expressed in the blogpost are the
author's and they in no way express the opinion or official position of
Bulgarian National Bank!
Conflicts of interest: I may possess some of the securities or currencies mentioned in the blogpost!
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