Wednesday, July 22, 2015

Who Sez...

Who says the financial markets are efficient?

Boosted by a recent stock surge, Facebook's (NASDAQ:FB) market capitalization has overtaken that of General Electric (NYSE:GE). The social network's 26% climb this year has brought its market value to $275B, compared to GE's $273B. Some are expressing concerns: GE racked up $149B in sales last year and employed more than 300,000 people. Facebook reported $12.5B in sales and employed roughly 9,200.

Something is a bit haywire.

I mentioned Apple the other day, worth more than all the auto companies in the world? Well, minus a few, but you get the idea. Is this an indicator of some sort of calamity? Hell, I don't know, but it might mean that when investing your savings, keep your eyes open and your wits about you.

Oh, and by the way, doesn't "sez" make more sense than "says"?

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