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Sunday, August 29, 2010

Beware of other dot-com bubble!


By achieving 500 million users (of which many are not active), the company Facebook is valued at more than 24,000 million dollars a Bloomberg magazine.The company, which bases its business with being social network support world's about successful, had earnings of $ 700 million in 2009. To obtain the value assigned to Bloomberg, Facebook needs to operate and is pop for the future 34 yrs.

The fiscal specialists expect earnings of 1,300 million dollars by the end of 2010, but the verb "hope" equals "has not happened yet." Would you buy contributions betting that Facebook social network will still be pop in 2044? Could someone make sure that Facebook will remain in control of our virtual lives in the future three yrs?

Google contributions surpass $ 400. Fund managers around the world expect the stock price will rise, since the company was 6.000 billion dollars in profits in the second quarter of 2010. However, can anyone project if Google remains the king of online search in the future five yrs?

Early in the decade of the 00 (2000), investors around the world lost billions of dollars when the bubble burst dot-com companions. Confronted with the massive use of online and news, from 1995, a considerable number of people thought that websites were the new gold mine and placed the demand for contributions prices of fiscal instruments in the sky.

Then, when about struck with the reality that these companions do not generate the expected profits, investors were in rush to sell their contributions, a natural phenomenon of the market economy downgraded the price of the instruments to zero. In the rankings of top business magazines like Fortune and Bloomberg, emerge as fastest growing companions eBay, Youtube, Twitter, among others.

The Wall Street Journal Google stands out as the Corporation paid $ 100 million like.com, a Web portal devoted to electronic commerce. Never mind that Yahoo was valued at 60.000 billion when Microsoft offered them an acquisition in 2008. It says Alexander Elder in his book Living the trading in, individuals reflect with and learn from their mistakes, but the crowds, which are affecting fiscal markets behave primitive and thoughtless.

Also Ralph Nelson Elliott, father of graphic analysis of values, based his theory with the fact that the crowds go from optimism to doubt, then fear, go back to hope and optimism. This means that the mood of about works in the form of a cycle that does nothing but repeat itself.

It seems that the fear of the dot-com bubble of 2000 was forgotten, so that investors are ready for another expensive lesson about the importance of not letting go with the flow.

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