The latest IPOs of tech companies like LinkedIn, Yandex and RenRen have reactivated the never-ending debate of valuations and the fear of another tech bubble, even if most tech stocks are cheaper than before the dot-com bust. But this time, we have the masterful studies of [amazon_link id=“1843763311” target=“_blank” ]Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages[/amazon_link] and [amazon_link id=“0123497043” target=“_blank” ]Tech Stock Valuation: Investor Psychology and Economic Analysis[/amazon_link], providing us with tons of empirical data from previous bubbles. Or even better, real-time theories of asset bubble formation, like the Jarrow-Kchia-Protter-Shimbo theory put to test in the following paper:
This time is different.