This is a short write-up I had prepared for discussion with a senior personnel in a prominent investment bank. The context was the pattern of stock prices in recent times of popular IPOs in the tech-space (more specifically, social-media space).
I feel that currently the "theory of conspicuous consumption" by Thorsten Veblen holds lot of merit. If you remember, in our last meeting, I had pointed out that the rules of demand and supply don't really work these days in the stock market. Ideally, the demand and price of a product should be inversely related, and so we should be seeing less demand as price of a stock goes up. But the prices of the social-media stocks did not really stick to that.
While there is a lot of talk about an internet/tech (though tech would be incorrect because we don't see a lot of buzz in other tech-related fields apart from social networking websites) bubble, and even a more specific social media bubble, I feel it is only apt to extend it to call it as a "social" bubble since we see that it's not only the social media websites which have caught people's imagination, but virtually everything which has something to do with people around us. The connectivity among people is growing. Today we know more about what our neighbour is doing than ever. And it's basic human instinct that we tend to do what someone else is doing, or try to do it better just to be noticed. In the process, we fuel things beyond their correct valuation.
It is somewhat like the Keynesian Beauty contest where every person is trying to judge what everyone else is doing, and do the same. With access to information becoming easier, this is leading to people taking decisions less on the basis of fundamentals of a firm/stock, and more due to the "social" effect.
I would also like to draw your attention to this article by Peter Thiel - http://techcrunch.com/2011/04/
PS. Quite an abrupt ending, but then that is only what I was to write as a follow up of my discussion with this person. Would love to know your views.
Ya mai jhul jaun, in ghatao mei kahin
Ek kar doon aasmaan aur zameen.
This song reflects so much more than just love. It celebrates life. For no apparent reason, right now, suddenly, I feel like going back to every single day of my life and relive them. I keep thinking how I would have acted differently in some past situation or the other, but I would hardly want my life to have gone any other way. Maybe it's only that desire to know what might have happened had I done or not done something.
While going to the office early in the morning, mostly alone, there is often a cold rush of breeze flowing. Just a short walk of 5 minutes from the metro to the office building is enough to let ones' thoughts wander. Before being jolted back to reality on entering the building, I love that 5 minute walk which is almost like going through a flashback of all those days. The oddest part is, I feel nostalgic about the days I spent even a month back. Surely that is strange.
But you have to give it to this feeling called nostalgia. I guess this is the only state when you are both happy and sad beyond measure. It's the only time when the most embarrassing moments bring a smile. The only occasion when you want to fight again for being given run-out in gully cricket and "lol" about it. The humdrum of those party nights with friends. The few minutes when you want to be in that state of despair again, knowing that you would come back stronger. The chance to relish that win once more. Learning skating. Best friend's tiffin. Getting punished because of not cleaning shoes by teacher. Mom's lap.
I just love LIFE.
P.S. Image taken from http://thejackette.net/
P.S. Image taken from http://thejackette.net/
