From Tice -g-
>>Quite simply, the stock market has absolutely run amuck. It has come to
be completely dominated by wild speculation and other distortions that
make it absolutely impossible to function effectively in its critical
role of capital allocation. Today, Amazon has more than double the
market capitalization of Sears. Semiconductor equipment manufacturer
Applied Materials, with 1999 revenues of about $4 billion, has a greater
market value than Boeing with annual revenues surpassing $50 billion.
The market also values UPS, this week's star IPO, at more than the
entire US airline industry. And Qualcomm, with $4 billion in 12-month
revenues, has a value more than one-third greater than General Motors.
Let's face it, today's marketplace is no more than one big gambling
parlor. And, importantly, it is certainly our view that all the fun and
games and b.s. have been allowed, and seemingly encouraged, for so long
that the stock market has truly passed the point of no return. As such,
we simply don't see how things can return to any semblance of normalcy,
except possibly after a crash or significant market washout. Quite
simply, too much money has gravitated away from sound investing,
choosing instead to join the teeming party of wild speculating. And
since the aggressive speculators have profited most from this
extraordinary mania, they have attracted immense assets, made converts
out of previously prudent investors, and have come to completely rule
the marketplace. This is most unfortunate. << |
