Terri
The article you posted indicated the Netscape could be a case study in market psychology.
So could the responses that you see to this article
For instance, for me....
I pick up on things like
"
Wall Street may need shock therapy as it hugs Internet stocks tighter, while offering
a support group for Netscape investors. The market seems to be in heavy denial of
signs that the speculative bubble is due to deflate, if not burst. "
"Taken as a group, the eight Internet stocks listed above have 46 Buy
recommendations and 11 Strong Buy recommendations out of a total of 78 ratings
on the group as a whole. How do you spell "bullish" again? B-u-b-b-l-e. "
However, others see the article as a negative spin on just Netscape and forget what it is saying about the rest of the sector. The same mentality that leads to those buy recommendations right now on Netscape is the same mentality that is leading to buy recommendations on SEEK, XCIT, YAHOO...etc etc etc.
One of my favorite people on the net said the following to me.
I think he is right.
+lisa (42585 )
From: +Tom Trader
Thursday, May 7 1998 6:29PM ET
Reply # of 42855
>>but here is what should frighten you about this market...there are people who truly
dont care about valuation <<
Well isn't that a fact!! I feel like a voice in the wilderness talking about valuation.
But the sad truth is that over-valuations can continue for a long time and they can get
even more exaggerated. The guy who wrote about SEEK is on to something when he
says that if one rides the rocket one can make a lot of money --but, I know, as surely as
night follows day, that sooner or later one will have to pay the piper and then the ones
who have bailed will be the smiling and the others will be left holding the bag. I have
seen this too many times, in different markets, to believe that this time is different. Like I
said to OJ, it is the greater fool theory that is in effect.
So I don't try to dissuade anyone from being invested or not investing in any sectors--at
least most of the time:) After all, I could be completely wrong!!
I say what I am doing -- right or wrong--and right now, for good or ill, I am earning 5%
interest on a good part of my funds in T Bills and money market.
May be I should join the Kahunaites:)
______________________________________
and another one I like:
+lisa (42585 )
From: +Patrick Slevin
Thursday, May 7 1998 6:29PM ET
Reply # of 42855
That is the new mindset. That is to say "The old rules don't apply anymore".
This is often echoed by people who have never been burned by the old rules.
The old rules always come back. It's the people who have been successful spiting them
that are the last to realize it. |
