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More Evidence the Animal Spirits Are Back... Caution!



September 21, 2009 – Comments (0) | RELATED TICKERS: BIDU , GE , BRK-A

We are beginning to see sightings of animal spirits in most all quarters of the financial markets. This week promises a surge in IPOs:

IPO Market Regains Momentum, WSJ, September 21, 2009

Guess which US-market IPOs have been most successful so far this year? This is from the Journal's excellent Heard on the Street column:

"Need more evidence that the red economy still is white hot? Consider this: Four of the top-performing U.S. initial public offerings this year were from China-based firms.

Shares in, an online-game maker, have doubled since floating in early April. Newcomer Recon Technology, which sells software to mining companies, has surged almost 60% since late July. Duoyuan Global Water, which makes water-treatment equipment, is up almost 50% since its June float. Shares of Lihua International, a wire maker, have climbed almost a third since Sept. 9. Next up? Shanda Games, an online-gaming firm that expects to raise at least $650 million this week.

Almost a third of new listings on the Nasdaq this year have come from China, as did four of 15 IPOs on the New York Stock Exchange."

I warned investors regarding this anomaly at the end of July -- it appears the risks remain unchanged.



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