Investing

2014 Looks to be the Most Active IPO Market Since 2000

After a peak of IPO activity at the end of the 20th century, we could be seeing a new trend of rising IPO activity caused by a combination of economic turnaround and a plethora of companies ready to go public. IPO activity has mimicked general market trends over the past decade and a half.

2014 Looks to be the Most Active IPO Market Since 2000

In 2000 US IPO activity experienced a surge that nearly doubled the average rate, therefore there were about eighty three IPOs in that year. Conversely, the mid 2000s and the year 2009 showed a sharp decrease in IPO activity. Numbers fell from an average of forty to ten and below. In 2009, there was only one IPO registered.

Currently we are seeing another rise in IPO activity as markets rebound from the Great Recession. Possibly we are also seeing companies that would have gone public earlier filing for IPOs now because of higher investor confidences and a more certain economic future.

Graphic: How Much Should You Have Saved Up for Retirement Today

The rate you save should change depending on your age and how much you earn. It’s important to save when you can and change your saving habits as you get closer to retirement. The table shown above is a savings calculator tool. This should be a guideline to help savers understand how much money they should have saved in preparation for retirement if they have been saving about five percent of their salary.

Graphic: How Much Should You Have Saved Up for Retirement Today

The table is broken into two categories; on the y axis is the age category, beginning at thirty years and ending at sixty five years, with five years intervals in between; on the x axis is salary, starting at fifty thousand dollars and ending at four hundred thousand dollars.

To use the table a person must first find the number closest to their age on the y axis and then the number which closest approximates their salary on the x axis. At the intersection of these numbers will be another number, which, when multiplied by the salary, will indicate the amount of money a person should have saved. Guides like this can be helpful tools in determining your saving rate, and accessing your current saving habits.

Effective Federal Funds Rate

This is graph shows effects in federal funds rate between 2006 to 2014.

Effective Federal Funds Rate
Via FRED

Between 2006 to 2008 it was very high. But after 2008 it is continuous going down. The rate of increasing federal funds rate not very good. First two year’s it is going down, but after that from 2008 to 2014 (6 years) it is continuously going down. It is not good sign. It shows negative mark near 2010 to 2014 it is almost finish. It is not showing any chance to grown up the federal funds rate. The government will need to take some better actions for it to continue to grow up.

Impact of US CEO’s on Companies Has Never Been Higher

The image describes the positive impact of CEOs on businesses for twenty year rolling periods. The time period used is 1950 to 2009 — a period of fifty nine years. The scale used indicates year and impact in percentage.

Impact of US CEO's on Companies Has Never Been Higher

At first glance, it appears that CEOs have had a huge impact on the business market, with their contributions seemingly taking up more than half of the graph, but closer inspection proves differently.

Actually, the CEO contribution to business improvement has been at an unsteady rate of ten percent for the six decade time period.

For the first thirty years, CEOs have contributed about ten to fifteen percent impact, starting from 1950 to 1980. For the most part, the CEOs have contributed to the lower range of the ten to fifteen percent frame, with an interesting surge for the last four years of the first half of this For the last four years of this period, CEOs made impact of fifteen percent or higher. A significant increase from the last twenty-six years.

From 1980 to the end, however, CEO impact was significantly raised when compared to the first half. Whereas they had previously made almost minimal impact — less than five percent impact for thirty years, CEOs initially began making about fifteen percent impact or slightly more for the first fifteen years and then twenty percent or near to twenty percent more impact after that.

Is There a Biotechnology Bubble?

Biotech bubbles have been predicted several years ago but nobody seems to care about its existence. This is due to that fact many small biotech companies are actually in the scene monitoring commercial activities of the bigger biotech companies. They simply refused to go public because they didn’t want to be swallowed up the big and powerful companies.

Biotechnology Bubble
Renaissance Capital

Now, biotech stocks are picking up because young pharmaceutical companies are going public, daring the bigger ones. So, it is right time for die hard investors to going for biotech IPOs before the market become another rowdy scene which might eventually end the mad rush as it happens in the years past.