Signs of Excessiveness and Extremism

Top Signs	Bottom Signs
1. Large no. of IPOs	1. No Mergers and Acquisitions
2. Rapidly Rising Prices	2. No IPOs
3. Excess Leverage	3. No new money for Venture Capital
4. Availability of Credit	4. Low Price/Sales and EV/EBITDA Multiples
5. Over-optimistic Front Covers of Newspapers and Magazines	5. Many Companies Trading below Book Value
6. Very High Trading Volumes	6. Very Low P/E Multiple
7. Historically HighP/E and EV/EBITDA Multiples	7. Central Banks eased for 6 to 12 Months
8. Art and Luxury Markets Booming	8. Recession Declared Officially, News is Stale
9. Financial Press and Financial TV become Favourites	9. Previously Favourite Sectors are Hated
10. This Time is Different" Declared	10. Credit only available to High Quality Borrowers
11. Amateur Investors moveto Equity Asset Class	11. Investors are Cautious and Out of the Markel
12. Innovation Leads to Euphoria	12. Negative Front Covers of Newspapers and Magazines
13. Social Proof Leads to Herding	13. Negative and Depressed Consumer Sentiment