Valley Wag writes:
David Einhorn’s hedge fund—notable for shorting Lehman Brothers before it dry heaved out of existence—is ready to make it official: we are in the midst of another tech bubble.
In a letter distributed to investors earlier today, Einhorn puts it very plainly:
We have repeatedly noted that it is dangerous to short stocks that have disconnected from traditional valuation methods. After all, twice a silly price is not twice as silly; it’s still just silly. This understanding limited our enthusiasm for shorting the handful of momentum stocks that dominated the headlines last year. Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand, and what might pop it. READ THE FULL PIECE.