The ipo market has been dead in the water ever since Facebook mugged investors. Last year’s $112 billion raised in the ipo market is the worst since 2008, 30% of 2011’s output. On one hand, it’s a good thing to have less deals, leaving limited choices for capital flow. But what does it say about the economy?
There’s no excitement in the market right now. For every resurgence in Facebook, I offer you a death in Apple.
The trading ranges will persist and hopefully we can break out to new levels. I’m not concerned about today’s pullback. It may be bought by the day’s end. But for the market to reenter real bull market status, we need the ipo market to liven up again. We need excitement, something to lure the naive retail investor back.
We need another Facebook, this time sans the criminality.