Bubble 2.0 - John Rothe | Portfolio Manager, Quant, Tech Geek, And Sometime Superhero To My Kids

Bubble 2.0

John RotheGreat graphic showing how over valued social media companies have become. What’s interesting is not only how high the PE ratios of social media companies are, but how high PE ratios are in general. Historically, PE ratios bottom out below 10 before a new bull market cycle begins. We are no where near that (see the second chart). Market strategist have been trying to guess when the market will begin to decline to these historical levels. Perhaps with the IPO of Facebook?

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John Rothe

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