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Bursting the dot-corn bubble


 

Back in August I wrote a piece for the magazine on the inflated value of Potash Corp., the Saskatchewan fertilizer producer that briefly became Canada’s largest company by market cap. A quick recap: Those bullish on the stock pointed to the fast growing middle classes of Asia, and their desire to eat more meat and vegetables, as a sign that demand for potash (which is used to make fertilizer) could only go up. The stock’s promoters pointed to soaring food prices as evidence this was the case.

The bears, on the other hand, warned a “dot corn” bubble had formed in agriculture stocks.

Well, POP.

Corn Heads for Worst Quarterly Loss as Slow Growth Cuts Demand


 

Bursting the dot-corn bubble

  1. Jason, you need to do more blog posts.

    Signed

    One of your huddled masses yearning to breathe free.

  2. Aye, that’s the thing about speculative bubbles… they all pop eventually.

    I was begging, with ever more menacing tone, my folks to sell Nortel to the greater fool at 90, 95, 100. They laughed at me all the way up to 125 or 130 or whatever it was. Pop, goes the retirement fund, and now nobody’s laughing.

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