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Saturday, August 04, 2007

Google GOOG is a barometer of WEB Bubble 2.0

Formula is simple but powerfull: housing bubble/subprime dry out of credit avalible and liquidity; consumers are hurt; spending power is going down (housing, cars, big ticket items, consumer electronics); business revenue is going down - first cut is advertising; GOOGLE growth is going down, it already apparent fact for two Qs in 2007; crowd will be late as usual as it happened with subprime; overextended on margins positions will collapse forcing selling.
Some people are telling that correction is over - not until GOOGLE will correct, as it was sad here before 300.00 range is still rich valuation in recession.
Where to be? Not in financial economy but in real things, fundamentals of which are driven by law supply and demand and powerful rising of the new world.

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