Yes. I believe, as does brilliant visionary economist Robert J. Shiller, that the prices of social media platform and related-application stocks are due for a bursting of their current bubble. I believe that they are grossly overvalued, and that true economic performance and aggressive piranha-like aggressors (those darned enterprising entrepreneurial types) will begin to snack on the fatted calf. My estimate for the purposes of The Global Futurist Blog, is that the bubble will burst within the next 18 months. And you can quote me on FaceBook if you'd like...
Economics, as a field of study, is truly an analysis of the behavioral psychology and resultant reflexes study of people behave turned loose in certain circumstances -- either real or perceived. Share prices rise and fall with perception, anticipation and manipulation. Human Beings, even the brightest Futurists, have an inherent propensity (a slightly irrational drive) to try to defy the macroscopic rules of economic waves and cycles in a microscopic style. This accounts for some contrarian investing, for baseless valuations, for unproductive bidding wars, for monopolies, for competition and for bubbles.
Bubbles occur in every aspect of any market where the participants involved stop looking at fundamental guidelines for valuation, and get caught up in a buying frenzy. And, as if suffering from some recurrent amnesia, they seem to forget about varies economic calamities which preceded the one in which they are currently obsessed, and start believing that there will be an asymptotic ascension of prices and values heavenward, with no adjustment or compensating balance. Like gamblers on a lucky streak they raise the amount of the sure bet bet until someone surprises them and hauls all of their wealth away.
If you're interested in Dr. Robert J. Shiller's Works, here are a few recommendations:
Yes, brothers and sisters - a change is gonna come.
Douglas E. Castle for The Global Futurist Blog
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