Jock, I think that the one thing Greenspan could have done to "talk down" the valuations was to increase margin requirements back to pre-1973 levels (i.e. you can borrow only about 50 bucks for every 100 bucks, or 35 bucks for every 65 bucks, to be precise).
He never did that, instead choosing to hit the entire economy by a 2x4, by hiking interest rates relentlessly. Then along came Bush and Cheney, a little overeager to lay the blame on the previous administration in case things went wrong, and the rest is history!
As for LSI, I think we will make an important low, possibly around 15, later this year. And if things work out well, the stock will double from there in 3 or 4 years. So, we can look at a price target of 30 by 2004 or 2005.
And that is if things work out well. Those who are expecting a return to bubble valuations and bubble returns are going to be seriously disappointed. |
