JEREMY HOBSON: Now let’s get to LinkedIn. The company’s stock is up about 8 percent today after yesterday’s 100 percent jump after its IPO. So should we be concerned that this is a sign we’re entering a tech bubble again?
Chris Low is chief economist with FTN Financial. He’s with us live from New York.. Good morning.
CHRIS LOW: Good morning.
HOBSON: So what do you think Chris? Are we entering another tech bubble?
LOW: Well, I have to say you know trading action like that certainly does feel bubbly. But if it is a tech bubble, it’s a little bit different this time. It’s not anything hardware and software — it’s social media related stocks that people are really interested in.
HOBSON: Well, one of the things that helped fuel that bubble is cheap money 15 years ago. But money is cheap again. Do you think we’re entering another phase of sort of irrational exuberance?
LOW: Yeah, I think that’s a good way of looking at it. The Fed — a lot of what the Fed is doing by providing liquidity is trying to force banks to take more risk. But in the process, they’re forcing investors to take more risk too. And it’s not just LinkedIn stock that’s up a ton this year — it’s commodities as well. And all of it is people just trying to find yield.
HOBSON: Trying to find a better return. Chris Low, chief economist at FTN Financial, thanks so much.
LOW: Thank you.
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