Bobby, yes, it is remarkable that the big cap established tech names have now also developed parabolas on their charts. i'm still utterly baffled looking at QCOM...yes, i know it's a great company with immense growth, dominant position, yadda, yadda, but when the earnings came in a measly 3 cents above expectations with year-on-year top line growth of only 14% (!), the stock initially did the right thing and sold off a couple of points. THEN they announce a 4-1 stock split, and it goes up 30 bucks every day since then...one broker today raised his target price for it for the second time this week!
now we have companies like ORCL and SUNW and the SOX components going totally crazy, and the IPO mania continues unabated...every single day another co. appears on the scene with a few million in revenues, losses that usually surpass the revenues by a good margin, 100 employees, and it's valued at billions of dollars on the first day of trading...on promise alone.
and Al is not sure it's a bubble?
really, i have seen much, but anno domini 1999 absolutely takes the cake in terms of unrestrained completely out-of-this-world speculation. it makes gold in 1980 seem reasonable in retrospect.
heck, even the final run in 1929 looks eminently reasonable by comparison. while i acknowledge that e.g. price/book may not mean nowadays what it used to mean, just to put this in perspective, if the market were cut in half tomorrow, the S&P's price/book would be the same as at the '29 peak!
and yet, i'm still not sure that we have seen the last of this mania...it seems to have immense staying power, like the cat with nine lives.
otoh, i have always said, it hangs by a thread...it could end anytime, and the event that ends it may at first blush be no biggie. considering the amount of leverage in the system, this just can not end peacefully....Al.com is kidding himself about being able to control this thing, this is mass hysteria in overdrive...
it may sound like hyperbole, but that's really how it comes across for me. the moves are just too incredible, too fast, too big, too everything.
good night!
hb
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