Wall Street Hunts for Its Next Bubble

Emerging markets upswing could mirror '98 tech boom

By Kevin Spak, Newser Staff

Posted Sep 20, 2007 12:48 PM CDT

(Newser) – With the Fed’s rate cut in place, Wall Street has visions of another bubble—this time in emerging markets. The Dow skyrocketed 2.5% on news of the cut, but even that was dwarfed by 4.2% gains in the Bombay Sensex and 4.3% in Brazil’s Bovespa. Fast-growing economies could benefit most, the Journal explains, from easy-flowing cash.

The situation is a “mirror image of 1998,” when Asian turmoil led to free-flowing cash for fledgling tech stocks. But emerging markets have grown even amid rising interest rates, meaning they may now be less volatile. Still, analysts urge caution. “Few people are saying, ‘Oh my God, it's a bubble,’” one said. “They're saying, ‘Whoopee, it's a bubble.’”

Darys Estrella, left, CEO of the Dominican Republic Stock Exchange, and members of her delegation, meet with specialist Anthony Rinaldi, right, during her visit to the floor of the New York Stock Exchange,... (Associated Press)

Trader Anthony Spina watches the numbers as he works on the floor of the New York Stock Exchange, Wednesday, Sept. 19, 2007. Stocks bounded higher and bonds fell Wednesday as Wall Street extended its... (Associated Press)

A man has his photo taken with the bull statue near New York's Wall Street as a tourist bus passes, Friday, May 25, 2007. Stocks rebounded Friday as investors adjusted positions ahead of a long holiday... (Associated Press)

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Wall Street Hunts for Its Next Bubble

Emerging markets upswing could mirror '98 tech boom

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stock market • Federal Reserve • Dow Jones • markets • Asian markets • emerging markets • Bombay Sensex • Brazil Bovespa

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Speculation on New Fed Rate Cut Tempers Losses

Stocks dip early, then tick closer to even ahead of mid-afternoon announcement

Stocks Drop, Market Awaits Fed Cuts

Dow sinks below 13,000 as credit tremors continue

Dow Drops 300+ Points

Investors worried about Europe again

Dow Down 100 at Open

S&P 500, Nasdaq follow suit

Dow Plunges 480+, Below 11K

S&P, Nasdaq follow suit

About Us

Site

Newser By Users

Community

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What is Newser?