There are some advantages to a slow IPO market, says Lutts of Cabot Money Management. When demand is low, only the best companies are able to attract enough demand to list on the exchanges, raising the quality of companies coming to the market. And it can be an indicator that the broader market is oversold and thus offers some bargains.
‘‘When we’re frothy, everything is coming at a premium,’’ Lutts says. ‘‘I'm interested in equities today because of a weak IPO market.’’