Richard, i agree...the group of red hot tech stocks you are referring to is manipulated up to insane levels by the mo-mo funds and the day traders who jump on the band-wagon. and the buying in this group has carried on regardless of economic news. i fully expect even insaner levels in these stocks, and a sudden, unexpected rush to the exit at some point. right now, the last holdouts are in the process of being sucked into the market, and this will likely intensify after labor day - i expect huge inflows into equity funds on the heels of today's rally. i also expect utter capitulation by the bears, bit by bit....die-hards like Tice and Prechter excepted. i am appalled that the Fed has fostered this insanity with it's easy money policy - when this mania finally collapses, the global economy will likely suffer the worst depression since the 1930's, and to add insult to injury, the short sellers will likely be blamed for the collapse..-G-
by it's implicit admission, contained in the statement accompanying the last rate hike, that the Fed is in 'bubble management' mode, a blow-off and subsequent collapse has been all but assured. the bulls who are now criticizing AG actually have got it right, if for the wrong reasons: their gains of the past few years will indeed eventually disappear in a black hole, but only because they shouldn't have come into existence in the first place. in the meantime, the whole financial system has been overleveraged due to the credit and asset bubble to such an incredible extent that the consequences of a collapse for the global economy will be extremely dire. i actually expect that some of the oldest and most respected banks and brokers could be completely wiped out when the time to pay the piper arrives. enjoy today's buying panic...we're getting closer to the day when buying panics will be nothing but a fast fading memory... |
