Where are the excessive parties and Herman Miller chairs?
If oil were to reach $150 a barrel, it would bring the market capitalization of oil and gas equity in the S&P 500 U.S. stock market index to more than 25 percent, exceeding the valuation of technology stocks at the peak of the Dotcom bubble, Deutsche Bank estimated in a research note.
“The obvious parallel in our mind is we think oil is overvalued where it is priced based on the underlying fundamentals, which is a parallel to the Dotcom boom and bust,” said Michael Waldron, oil analyst at Lehman Brothers. [Reuters UK]
