Quotes of the Day: “Rushing Out” Onto That Ice

In Saturday’s video commentary I suggested that the last time the ice on the lake (my metaphor for equity markets) was this thin and the temperature this warm the ice ultimately broke.

Well, much like the latter-stages of the past two episodes, some folks have no compunction “rushing out” onto that ice.

From Friday’s Wall Street Journal on the present IPO craze:   emphasis mine…

“Bankers, lawyers and executives say that if the frenetic pace keeps up, 2020 will eclipse the tech-boom years of 1999 and 2000, when investors feverishly pumped money into burgeoning internet stocks before they crashed to Earth.

…the most concentrated the IPO market has been since 2007, according to Dealogic, when new listings of banks and lending institutions flooded the market before the financial crisis.”

Well, as we keep preaching herein, while the Fed will tell you their actions are all about promoting stability, well…. no!

“After the S&P 500 hit its 2020 low in late March, a bond-buying intervention from the Federal Reserve helped companies raise cash—and enthusiastic bets from individual investors helped drive up shares of big tech companies and propel major indexes higher. Bankers and corporate executives took advantage of the optimism, rushing out companies that had been aiming for early spring IPOs.”

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