End of Ericsson honeymoon since 2003 signifies an end of the global stock market bubble that started in the same period
Alan Hershey
Oct. 17, 2007

It was a fantastic ride since 2003. World’s largest telecommunications equipment manufacturer, Ericsson, led by Carl-Henric Svanberg, who has been Ericsson’s chief executive since 2003 had a boom every year since 2003. Quietly Ericsson led the contemporary global boom in equities taking advantage of US and EU markets and at the same time cashing in emerging markets like China and India.

Something sinister happened for Ericsson and the global stock markets. The Swedish telecommunications equipment manufacturer issued a severe profit warning that may have given the first signal of global equity market route. The revenue gain from India and China failed to make up for the massive loses in America and Europe.

According to some estimates, the company lost 38% of its value and $16bn from its market capitalization. The total route of the stock is significant for all equities in the whole world. It silently says, the emerging economies like China and India are too small to compensate for massive slack in US, EU, and Japanese economies.

As a matter of fact China, India, and other emerging economies may just follow the mega trend in the future adding more pain to the whole equation of global recession.

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The total route of the stock is significant for all equities in the whole world. It silently says, the emerging economies like China and India are too small to compensate for massive slack in US, EU, and Japanese economies.
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