James McKee

The LinkedIn Bubble



Posted: Sunday, May 22, 2011

by James McKee
http://www.forex.tradingcharts.com

LinkedIn’s IPO performed beyond all expectations when it doubled in value with only one day of trading under its belt.  Such performance is reminiscent of the various dot com bubbles that occurred recently, and unfortunately for many investors there is a good chance that there will be significant losses if the bubble should reoccur.  LinkedIn investors should treat the days ahead as a chance to get out of a potentially risky stock.  There can be a real sense of trouble where this stock is concerned for the long term, and while LinkedIn has a relatively stable web presence things could change in the blink of an eye.

There should be no shortage of caution when buying stock in such a potentially volatile company, and there are many aware of this.  There is a good chance that a massive sell off where this company is concerned will occur, and that will spell out a good deal of turmoil for the company and shareholders.  There needs to be a calculated and aggressive amount of innovation where this company is concerned, or it could end up falling apart in the coming months.  Such a blow would inevitably have an impact on the USD and on the online forex exchange.

Investing in any thing whether it be a stock or a piece of real estate involves a degree of risk that must be shouldered in order to make any profit.  Where LinkedIn is now concerned it is anybody’s guess as to whether or not holding onto this stock will be a good idea, and considering its cost is now around $100.00 a share it is not the type of investment that should be made idly.  Purchasing this particular stock should be a decision that is made carefully and deliberately, otherwise there is a good chance of serious loss.

 The author is a Forex trader and financial analyst residing in Denver, Colorado.  To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.
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