Published on 21 Dec 2021 on MarketWatch
The IPO bubble bursts as the era of easy money ends
U.S. Federal Reserve Chair Jerome Powell’s prompted investors to revisit many of their assumptions about the market. Investor soul-searching has revealed at least one truth—the IPO bubble is finally bursting. As the era of easy money looks to be coming to an end, we are beginning to witness the simultaneous end of the “duration trade,” in which investors bet on profits that will come very, very far out in the future.