In the late 90′s we had the dot com bubble. Investors were stupid and they knew they were being stupid. They were just hoping to get in and get out before it popped. Many did. More didn’t.
We are currently in the social media bubble. (speaking strictly in terms of investing)
When it pops it won’t go away just like the dot coms didn’t go away. And I don’t think it’ll really pop, it’ll deflate.
What did go away was the over hyped investment money. Is Facebook really worth $40/share? I don’t know. So far I haven’t seen what they are really worth. When we do I suspect we’ll see the bubble start to lose some air. Not too quickly. But it’ll right size itself.
That’s my prediction for the day.
