| A few comments on investment psychology. I'm Canadian, so I'll stick to Canadian companies to illustrate this, although I'm sure that you can just as easily point to numerous examples in the U.S.. Lowen Group, which just a few years ago was considered the bluest of blue chip here in Canada, is presently in bankruptcy. Who would have thought that a company dealing in burials could come to such a fate? It was everyones darling. Nortel, which made up 33% of the TSE until just recently, has lost 70% of it's value in just a few months. The bluest of blue chip. Now probably the most detested company in Canada, forced to reveal the unthinkable to its' shocked shareholders last week. How quickly things change. Yet investors were as sure that Nortel was their road to riches, their future, as they were twelve years ago that Japan was untouchable. We often can't see the forest for the trees. The mighty dollar is no more exempt from the laws of the market than Nortel or Japan was, and it's being printed like it's going outta style (pun intended)VBG. Either free markets work, or they don't. All IMHO of course. |
