Jesse Colombo

Jesse Colombo
Contributor since: 2012
Great article - I agree. Here's what I wrote about LinkedIn a few days ago: http://seekingalpha.co...
Revenue isn't very meaningful if there aren't profits.
True - though, I do believe that there's a lot of overlap and I believe that the recent web 2.0/tech boom as a whole is experiencing a bubble.
Thanks! I'm glad you found it informative.
Good article - you may like my recent article, "Is The Social Media Bubble Finally Popping?":
http://seekingalpha.co...
I'm concerned with the economic effects of the social media bubble's popping as I believe that it's contributed to what I call the Post-2009 "bubblecovery" or bubble-driven economic recovery.
I feel the same way.
Yes - I have no doubt that social media can be a legitimate business, it's just these wild valuations and the "me too" startup boom that I take issue with.
I agree with the comments above - social media itself is here to stay (I am an avid user of it), but it just isn't the commercial success that it's being hyped up to be.
The website where the data comes from (GlobalPropertyGuide.com) describes each data series:
http://bit.ly/OrX3zM
Very interesting anecdotes - thanks.
Great comment - I appreciate your point of view.
Thanks - glad you enjoyed it.
Thanks for the comment - those are good points.
Thanks for the compliment :)
Thanks - I definitely appreciate the first-hand anecdotes.
Exactly - what's cheap can get cheaper.
You're welcome - glad you appreciated it.
I'm fully aware of the possibility of another Chinese stock boom/bubble. At the drop of a hat, if my trading system tells me to, I'm ready to buy a China A-shares ETF that trades directly in Hong Kong. I have no problem profiting from something that I believe is a bubble.
I realize that and I even recognize the possibility that we may see another phase of the emerging markets stock bubble. As I wrote:
"Now that emerging market central banks are pursuing looser monetary policies to boost growth, it would not be surprising if economic overheating and stock market bubbles start to rear their ugly heads again in the future."
At the same time, what is cheap can get cheaper. If the emerging market property bubbles were to suddenly pop, it would certainly harm their banks, which could easily send their stock markets much lower from here.
I cover Australia's bubble in my other articles:
http://seekingalpha.co...
http://bit.ly/yzPGZq
How are these situations below not bubbles?
http://bit.ly/zn9Dry
http://bit.ly/yEAhkU
http://bit.ly/yAuWXt
http://bit.ly/yzPGZq
You may want to be careful about believing the "this time is different" rhetoric about these current bubbles that is very similar to what U.S. housing bulls were espousing from 2003-2007.
The U.S. bubble was not some special situation - the same factors that pumped bubbles in the U.S. are now creating bubbles in emerging markets and in other non-deflation prone economies around the world.
What makes you think that emerging markets are "magically" immune to experiencing bubbles of their own? Bubbles are not just a "U.S. thing" - there are economic & property bubbles throughout the world right now in China, India, Canada, Australia, emerging markets and Asian Tigers nations. These bubbles are fueled by the same cheap credit that fueled the U.S. housing bubble - they haven't popped yet because the 2008 crash was mainly a U.S.-epicentered crisis. The bubbles I speak of are largely behind what you call the "immense wealth" being generated in emerging economies.
Read more below - you'll be hard-pressed to prove that these are not genuine economic bubbles (I'm not saying that they will pop tomorrow either):
http://bit.ly/zn9Dry
http://bit.ly/yEAhkU
http://bit.ly/yAuWXt
http://bit.ly/yzPGZq
The post-2009 Northern and Western European housing bubble is just one part of the global property bubble that is still largely unpopped.
The demand from emerging market buyers is mainly in prime areas of London and Paris. The other countries' bubbles are driven by locals.
Plus, China and emerging markets are experiencing true bubbles of their own:
http://bit.ly/zn9Dry
http://bit.ly/yEAhkU
Ultra cheap credit is inflating economic bubbles around the world, aside from the now deflation-prone U.S., Japan and PIIGS nations.
I completely agree - I didn't intend to imply that now was the time to start shorting these, I just showed which investment vehicles can be used to short these bubbles when that time comes. The timing of these trades is up to the individual.
I will never bet against a rising market - I always trade with the trend.
I also believe that these bubbles can grow larger if there is some semblance of an economic "thawing" and improvement in sentiment, which is a possibility if stock prices can firmly break above their 2011 highs and try to rally toward their 2007 & 2008 highs.
Right - negative real interest rates are inflating asset prices and bubbles all around the globe, especially if you look outside of the now deflation-prone U.S., Japan and PIIGS nations. Rising asset prices (thanks to cheap credit) are creating an artificial wealth-effect that is very similar to the wealth-effect created by the U.S. housing bubble from 2003-2007.
I also wrote about an emerging markets bubble:
http://bit.ly/yEAhkU
It truly looks like it. I responded to your private message in more detail.
Yes, I agree.
With all of the troubles that the PIIGS nations are facing due to their popping real estate bubbles, can you believe how lofty and downright bubbly their real estate prices still are?
http://bit.ly/w2rSFX
http://bit.ly/xYUMqC
http://bit.ly/w58ZaE
It really makes me worry about what will happy when these real estate prices finally come down to earth in earnest. I haven't heard any commentators talk about this extremely important facet of the European crisis.