Mike, this reminds me a lot of the "go-go" days of the late 60's, when minicomputer companies (Digital Equipment), computer leasing companies (Leasco), conglomerates (Gulf & Western, Teledyne, Litton, Loews) and the "Nifty 50" (Avon, Xerox, Polaroid) were all the rage -- but on a larger scale because there is more money sloshing around now. Interestingly, the party did not really end for years until 1973-74,
when many of the "names" were down 75% or more. Also interesting is the fact that there was rampant speculation while the Dow did not run away. It was an exciting time for a young guy like me then although it wasn't so easy to make much money in the market on your modest savings, when good jobs for young people were paying $10,000+.
Any other oldtimers around who see the similarities? If it is analogous and this is like the peak year 1968 (I believe), we still might be quite a while away from market calamity.
Mike, I advise you to suggest as strongly as possible that your friend immediately take his cost out, so he is playing on the house's money.
It is a no-brainer that he is gambling and that is the sound strategy for gambling when you get way ahead. Also if he makes the first sale,
the second may come easier, while he still has significant profits left.
Do you have a view on EBSC now? |
