Stock Market’s ‘Hidden’ Risk Is Wall Street’s IPO Failures

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Wall Street never met a popular trend it couldn’t drive to excess. The past twelve months provide an excellent case study. With the underlying mood moving from Covid doldrums to growth euphoria, the stock market became the place to be. Add in the rush to excitement from novice investors with money, and the stage was set.

Today’s IPO “boom” is diverse and widespread. Its “focus” is on investments that might produce an extraordinary return, seemingly without inordinate risk. That is right up Wall Street’s alley – packaging stuff that entices and has a look of safety.

Even the analytical backdrop shifted in Wall Street’s favor. The story became everything. Earnings? Sales? A proven strategy? Those things only put limits on how high a stock could go. It was the dream of wild success that became the popular trend – the driving force behind meme stock actions and Wall…

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