Do You See a Bubble?

Newsletter writer Mark Hulbert recently raised the question of what the rate of initial public offerings means for the stock market. 
Maybe an eye exam will help. Photographer: Patrick Fallon/Bloomberg

Analyst Mark Hulbert recently raised the question of what the rate of initial public offerings means for the stock market. He looked at IPOs and dividends as a broad way to evaluate investor sentiment. He used a variety of different data points to gauge if stocks were in a bubble. He also drew on (among other things) some interesting data from Jay R. Ritter, a professor at the University of Florida, who is an expert on IPOs. This led to some interesting observations.

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