Dear Reader,
I am going to write about tech stocks. Facebook is trading at Price/Earnings Ratio of 84. Twitter and LinkedIn are making losses. In my opinion this is not sustainable. I count on LinkedIn and Twitter to popularize my blog. But they'd better start making profits. Otherwise, if a correction ensues FB, TWTR and LNKD could fall more than 30%, which would make them takeover targets.
Personally, I hope they survive because they are WEB 2.0 personified and add great value. I hope they thrive and add value..., even for me :-)
But for now the overall stock market rally seems set to continue.
Overseas investors in euro area government bonds are making or could yet make losses because of the depreciation of the euro. I think this factor plays a part in diminishing demand for eurozone government bonds. But the ECB seems ready to step in and fill the gap. The eurozone government bonds valuations seem lofty, to say the least!
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 mentioned in the blogpost!
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1 comment:
Stocks and bonds look like the Missisipi bubble. Actually a famous writer once wrote "Reality exists in the human mind, and nowhere else."
The new normal is deflation in wages and bubbles in assets.
Things are getting less affordable - education, health care, basic food and shelter.
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