i know this is definitely not the same market we had just 10 years ago. literally, every tom, dick, and harry is investing in the stock market these days.
No, it's not like the market ten years ago (which was still recovering from the 1987 crash), but what's scary is how similar this one is to a market 70 years ago. Then, as now, "growth" was the mantra of the market. Then, as now, it looked like a whole new economy with new rules was being born. Then, as now, many argued that a new plateau had been reached below which the market would not fall. Then, as now, the market was crowded with a number of companies that didn't have much real chance of genuine growth, but did participate in incredible stock-price growth. Then, as now, "every tom, dick, and harry" was in the market.
I'm not predicting that what happened 70 years ago in October will happen again, but merely saying that the history of that market should temper our exuberance about this very similar market. |
