Comments on: Irrational Exuberance…Again? http://www.businesspundit.com/irrational-exuberanceagain/ Entrepreneurship, Startup Companies and Business Philosophy Mon, 23 Nov 2009 02:54:25 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: ali http://www.businesspundit.com/irrational-exuberanceagain/comment-page-1/#comment-7259 ali Tue, 15 Jul 2008 15:33:52 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2445#comment-7259 I agree with the book - however we saw the market increase 3000 points since this post before tanking Oct 2007. How do we justify that? Should we forget about timing and just dollar-cost for life? I agree with the book – however we saw the market increase 3000 points since this post before tanking Oct 2007. How do we justify that? Should we forget about timing and just dollar-cost for life?

]]> By: Davis Freeberg http://www.businesspundit.com/irrational-exuberanceagain/comment-page-1/#comment-333 Davis Freeberg Fri, 23 Dec 2005 18:15:58 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2445#comment-333 I would argue that the latest bubble is being driven more by private investment then in publically traded stocks. Too many baby boomers got burned in the implosion, but a lot of hedge funds are still will to invest massive amounts of capital in pre-IPO companies. I don't think that the term bubble is the best term to use, but there is clearly a lot of interest in these successful privately held companies. I really see this more as the filling of the bubble that we expected back in the late 90's. At that point people did get ahead of themselves, but the fact of the matter is that there is a technological revolution that is developing from those roots. As companies and hedge funds continue to see success in these private investments, it could translate into the public market, but for now it appears that it's a private bubble and not a public one. I would argue that the latest bubble is being driven more by private investment then in publically traded stocks. Too many baby boomers got burned in the implosion, but a lot of hedge funds are still will to invest massive amounts of capital in pre-IPO companies.

I don’t think that the term bubble is the best term to use, but there is clearly a lot of interest in these successful privately held companies. I really see this more as the filling of the bubble that we expected back in the late 90’s. At that point people did get ahead of themselves, but the fact of the matter is that there is a technological revolution that is developing from those roots. As companies and hedge funds continue to see success in these private investments, it could translate into the public market, but for now it appears that it’s a private bubble and not a public one.

]]> By: Jason http://www.businesspundit.com/irrational-exuberanceagain/comment-page-1/#comment-332 Jason Tue, 20 Dec 2005 10:01:25 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2445#comment-332 Yes, just try getting an investor to buy an option. It doesn't matter if you explain that selling an option entails a (theoretically) infinite loss, and your upside is limited. As far as I can tell, only two things matter: 1) I'm recieving cash, not paying it out and 2) My option won't get excercised. We stink at dealing with pRobabilistic payoffs. Yes, just try getting an investor to buy an option. It doesn’t matter if you explain that selling an option entails a (theoretically) infinite loss, and your upside is limited. As far as I can tell, only two things matter: 1) I’m recieving cash, not paying it out and 2) My option won’t get excercised. We stink at dealing with pRobabilistic payoffs.

]]> By: Rob http://www.businesspundit.com/irrational-exuberanceagain/comment-page-1/#comment-331 Rob Tue, 20 Dec 2005 04:26:35 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2445#comment-331 The one and only time I've been to Vegas, I remember being astounded at a woman who was playing a slot machine and said to her friend "Oh look! Just a little bit more and I would have had three diamonds." I kept thinking "yes, but it's a binary outcome. You win or lose. How close you are is irrelevant." Somehow I think being close made her want to play again. The one and only time I’ve been to Vegas, I remember being astounded at a woman who was playing a slot machine and said to her friend “Oh look! Just a little bit more and I would have had three diamonds.” I kept thinking “yes, but it’s a binary outcome. You win or lose. How close you are is irrelevant.” Somehow I think being close made her want to play again.

]]> By: laurence haughton http://www.businesspundit.com/irrational-exuberanceagain/comment-page-1/#comment-330 laurence haughton Mon, 19 Dec 2005 20:58:13 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2445#comment-330 Is there any known connection between investor behavior and Skinner's variable schedules of reinforcement? I know the people who design slot machines are hip to this theory but are the financial services people on it? Is there any known connection between investor behavior and Skinner’s variable schedules of reinforcement?

I know the people who design slot machines are hip to this theory but are the financial services people on it?

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