Given the cyclical nature of IPOs, do you think we are entering a new "hot issue" period? If so, why?
Answers:
Probably - the markets have recovered from major falls. The dollar has got as low as it can may go up in the future. So its a good time to sell your company to the public.
When the dollar was falling and the markets a bit rocky companies would not be floated as you won't make as much.
The stock markets are always cyclical. Last hot period was 1990-2000, whcih is the longest in the history of stock markets. Then recession till 04, a double dip recession, again the longest in the history. Coming out of an recession u can definitely expect IPOs to be hot for the coming years. One reason is that in recession the stock markets went really low, so the first year was recovery i.e. getting back to old numbers and then now we have entered into the stage which are above the late 1990 numbers.
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