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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end?
YHOO 52.580.0%Jun 26 5:00 PM EST

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To: Dale Baker who wrote (2631)2/6/2000 5:04:00 PM
From: Mad2  Read Replies (1) of 3543
 
Why all the resistance to change here? Wasn't the world before WW2 just a shade different from what followed? Wasn't 19th century industrialization distinguishable from early 20th century technological innovations? Didn't economic models have to change?
I think the point has to do with valuation, specifically that the prices of many high fliers are justified based upon wildly optimistic growth rates of revenue projected out 3-5 years with little room I might add for error.
Ultimatly, stock prices are determined upon return of cash flow (projected out to the future of course) to the account of the shareholder.
So it begs the question of where is the upside here? Or more in other words does the downside risk outweigh the upside potential?
Mad2
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