#BullishIPO #BullishIPO – why the market loves new IPOs in a bull market
When sentiment is bullish, new IPOs can attract capital like a magnet. Investors are looking for the 'next winner,' and fresh companies often launch with valuations based more on potential than on historical performance. This provides two opportunities: a short-term 'pop' on the debut day and a medium-term continuation if the company delivers results and the narrative grows. However, it is crucial to sift through marketing from fundamentals. I check: the business model, margins, revenue growth rate, lock-up structure (when insiders can sell), and valuation relative to the industry. I set up an entry/exit plan and stop orders in advance, as volatility in the first weeks can be extreme. A bullish market rewards momentum, but it is risk management that determines whether 'euphoria' turns into real profit. IPOs are tempting, but selection and discipline are essential.