/
•
•
Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Information asymmetry, overheated valuations and speculative intent merge to exacerbate the froth in equities. It usually doesn’t end well for IPO investors.
Circa January 2008. I remember the time as a major turning point in equity markets. The ensuing crash was pinned, rather simplistically, on what was, till then, the largest Indian IPO ever—Reliance Power. The explanation trotted out was that the big headline IPO had sucked out all the liquidity, leading to the crack.
What was ignored was how market cycles play out. The crash was preceded by a stellar bull run that had lasted nearly five years, generating a staggering and unprecedented 50% CAGR for the Nifty 50. A correction was overdue.
Cut to the present day, and I’m waiting …
The region seems to be hyper-focused on boosting investor confidence in different markets; PIF’s new loan.
Frequent portfolio reshuffles and primary market allocations have driven returns. The question is whether this approach can hold up over the long term.
A new partnership between the two investment giants; Dubai Investments Park opens for subscription; and fears of war, once again.
