Hey, rara avis, how the heck are you?
My theory is this market was all set to deflate in late '97, but, just prior to then, the y2k thing began to surface which freaked out the money people.
Ever since, we've been on a "support at all costs" mode until the y2k issue had been resolved. This was deemed necessary to provide the proper environment for any perceived y2k repairs that needed to be made.
Now, maybe the banks and tech corps were taking the Fed for a ride or vice-versa - I don't know and I don't really care. But together, they've basically destroyed the rational capitalization and pricing functions of the world equity markets and they well know it.
With y2k apparently resolved, I think the knee-jerk markets will probably rally here, maybe even for a few months, maybe not, but we're definitely at the "road-runner, coyote, cliff" point now. This coyote market is already off the cliff and is now pedaling in mid-air - it just doesn't know it yet that what tenuous underpinnings there were are quickly dissipating.
The road-runner, a rare bird himself, just stands there on firm ground, goes "bleep-bleep", and zooms off in the opposite direction. I think you're in good company. |
