Interpreting Middle East Economic News and Analyzing Market Trends

The Dubai Financial Market’s amazing rise…

DFM 5-5-2014 - Zerohedge

Source: Zerohedge

We’ve mentioned the amazing rise of the Dubai Financial Market in previous posts (here) and have been watching the rise in 2014, which has been even more amazing, up over 64% so far this year.  Remember what happened the last time the DFM took off like this?  Take a look here and see…

DFM precrisis 2008 zerohedge

Source:  Zerohedge

Markets that go up fast come down fast, but it looks like the DFM still has room to rise to reach the 2005 high… unless, of course, “this time is different!”  When markets reach this kind of euphoria, you start to notice some funny things.  Take for example the DFM’s first IPO in five years… it was 36 times oversubscribed.  This was for a company that, according to the news, “is a cash shell which does not have any current operations.”  Read the full story from Arabian Business.  Maybe if they legalized gambling in Dubai the stock market would act more rational.

See the charts above from the original post here from Zerohedge.