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Though Unicorns Are on Parade, Negative Yields Are Here to Stay

It's 1999 all over again. According to a Bloomberg article, 2019 is the biggest year on record for the amount of money raised in US IPOs, roughly double the yearly average since 1999. The total is a staggering $80 billion. While Wall Street may see this as cause for celebration, IPO peaks tend to occur near major market tops. As the article notes, "both 1999 and 2007 were unusually strong years for IPOs that were swiftly followed by bear markets and economic downturns."

Indeed, it is a record year. Leading the money-losing IPO parade is Uber with an annual loss of $1.8 billion, one of the largest on record. Lyft closely follows with an annual loss of -$911 million. The saying "It's Probably Overpriced" will never be more relevant than with the IPOs of these unicorns. And the valuations? Uber is aiming for $100 billion.

It's raised over $24 billion already in private and venture capital. Lyft in comparison seems small, approximately $4.7 billion. Though …

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