LinkedIn, the networking website, debuted on the stock market to day at around $80 per share. From what I have read this gave the company a capitalisation of around $7 thousand million pounds.
Or on another measure called the price over revenue (NOTE: Not Earnings- revenue, it has no profit) ratio of only 980.
In the widest days of the tech bubble this would have been ridiculous. But today, it is the norm, because the world is simply awash with cash looking for somewhere to go.
As I left the house today, CNBC were talking about the risk that is being taken in the search of a return. The explanation was that the Fed (all central banks) have created an environment whereby investors are taking increasingly high risk bets because interest rates are so low.
For me this is a recipe for a disaster, but remember none of the information on this web site should be taken as advice to buy or sell any investment. It is just the rambling of a mad numismatist who is not going to take it anymore.
