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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: stockman_scott who wrote (3372)3/19/2001 10:47:22 AM
From: Michael Watkins  Read Replies (1) of 52237
 
Re Long Term Time Horizon... was reading an article this weekend, didn't check their figures, that stated that it would take 7 years for INTC to return to its past highs; YHOO 20 years, at an average annual rate of return of 15%.

Long enough for you?

I don't think Greenspan is the key behind the bubble - the nature of the internet and the street hype machine are the principle factors. Internet technology leads to rapid change; it was exciting and the rate of change drew everyone into the speculative frenzy, worried they would miss out. The street managed to justify with fanciful methodologies all these development stage companies that under normal circumstances would have died before ever going public.

The public ate it up, but the street was serving the dish.

Any student of history could see that the chances of the speculative mania ending in the way that it has was far more likely to happen than not.

And here we are.
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