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With stocks reaching unprecedented highs during the Internet Bubble, analysts often had to convince investors that all the money they had poured in was “worth it”.
 
 
The result was a variety of “new metrics” that would be used to value stocks.
 
 
The thinking was that the New Economy stocks were a breed apart and the same standards that [...]

In Yesterday’s post we dealt with Bubbles and the ‘greater fool’ paradigm that almost always tends to operate in the case of financial bubbles. We also dealt briefly with Financial Pornography. It’s again important for us to note that most Bubbles come about primarily in situations when there is:
a)     Some new Technology
b)    Some new (unexplored, unexamined business [...]

Most bubbles that financial history has seen have been associated with some new technology or with some new business opportunity. The internet was associated with both.
 
 
The internet represented new technology and it also promised a new business opportunity which promised to revolutionize the way we purchase goods and services and consume information.
 
 
According to [...]