It’s getting hot up here! Equities are toast. We are ringing the bell on the global equity markets on the first day of TWTR: NYSE listing.
We love the Internet, Social Media, Gaming, and software applications designed to run ‘ideas’ on smartphones and tablets. We love their creativity and productivity but we don’t love the public valuations of their stocks. They have entered into the ‘APP’mosphere.
What has driven these stocks higher – the power law of internet adoption rates, corporate debt growth, and credit availability are the first factors that spring to mind.
Markets are where buyers and sellers simultaneously agree on price but disagree on value. There is subjective value and then there is objective value. Subjectively we object to these values. This is an excerpt for the coming HindeSight Investor Letter November 2013 Equities – A Rarefied ‘APP’mosphere.