Another potentially telling late stage occurence!

Want to thank my buddy Charles for this chart.  Another one of the things that happens in late stages of bull markets has now showed up. One of the hallmarks of the overheated Tech bubble of the late 1990’s was the large % of IPOs that were offered to the public by firms that had no profits. At its peak in 1999, more than 3 out of 4 new IPOs were from companies with no profits. We have now reached and even exceeded this benchmark that indicates the lowering of the bar. Keep in mind, we have been already telling you about the numerous Biotech IPOs that not only lose money but have no sales. This is not a pinpoint indicator. By itself, it does not mean the market will just roll over and die. But when adding up the weight of the evidence…record margin, ipos, secondaries, one has to keep this in the file manager.

Source: Bloomberg and Sundial Research