An article by Reuters on the rush of venture capital into the Internet start-up arena since dot-com mania first boomed and then fizzled more than a decade ago.
“It’s different this time”, the articles says, mainly because the global character of this rush ; “Of the more than $5 billion of VC money invested so far in 2011, just $1.4 billion has been deployed in U.S. start-ups. according to Thomson Reuters data. Roughly three quarters of the 403 deals have taken place overseas.
If you believe it is different this time, there is an ETF that can be an opportunity to benefit from the rush : First Trust IPOX-100 (FPX) will track the performance of the biggest US IPOs. (only US IPOs). : IPOs come into the IPOX Composite at their seventh trading day after going public and automatically exit after 1000 days, or roughly four years trading
A look at the chart :
- A clear up the stairs-pattern
- the 50d MA is the support level
- The recent pull-back can be a nice opportunity to step in.
- Use the 50d MA as the stop loss level