>>>It has been log overdue that the Federal Reserve Chairman be asked to resign.<<<
I know you didn't write this but I think that is one of the most stupid statements on SI, The Fed isn't to blame for this. It is the people that thought that these stocks were really worth 200 years worth of earnings, that internets were going to cure cancer, B2Bs were going to multiply profits 1 billion times in weeks or that Biotech was going to cure all sickness in a day. The morons bidding this market up to ridiculous levels are more to blame and those of us that tried to warn everyone that action like we have now was going to have to happen were scoffed at.
These people need to wake up, smell the coffee and take this medicine like grown men and women. Valuations are still too high and now that they stretched this market to the upper limits, we might, MIGHT, just test the lower limits which are much much much lower than this. We haven't seen anything yet. The DOW is still within 10% of it's high, the SPX is only down 20% and the NASDAQ trailing PE is still grotesquely above historical norms. Recall back when tech was in it's infancy ( the stage where the most growth could occur) that TRAILING PE ratios were still in the 20s to 40s.
I get a kick out of all these people trying to blame Greenspan for taking away the heroine that was going to kill them eventually anyway. At least after some painful withdrawls, the patients might just survive. If they don't, then they were the foolish money and that cash is going into much more intelligent hands.
Sorry for the rant but I just can't believe that people want to blame everyone else but themselves. Those that don't study history are doomed to repeat it and we are doing so right now. Hope everyone studied for this little pop quiz. <gggg>
Good Luck,
Lee |
