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A bubble or a boom?

An article on Wired caught my attention today, “Silicon Valley is roaring back to life, as startups mint millionaires and Web dreams take flight. But, no, this is not another bubble. Here’s why.”

An interesting snippet, “A boom perhaps, but not (phew!) a bubble. There’s a difference. Bubbles are inflated with hot air and speculation. They end with a wet pop, leaving behind messy splatters. Booms, on the other hand, tend to have strong foundations and gentle conclusions….. But if there is such a thing as a healthy boom, we’re living it now. Google may be trading above $400, but the Nasdaq as a whole has hardly budged in five years. Companies are once again minting millionaires, but venture capitalists are investing less than a fifth of what they were at the 2000 peak. About 50 technology companies went public last year, but more than 300 went public in 1999.”

Read whole article here.

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