To All, Little bubbles, in the wine. Yesterday and today were field days for the Bubblelonian winos, who didn't die, but were just hibernating during the small dose of reality in 2000 and 2001.
1. We had a top level ambassador from Bubblelon speaking here last night, at my firm's request. Jeremy Siegel came in with his theory that if you draw a straight line though bubble valuations, they will continue to rise that way forever. In all honesty, I thought he had been totally de-frocked and would never be invited to speak anywhere again. Sadly, I have two connections with this fella, who is a nice enough guy. One, my firm sponsors him. Two, he teaches at my alma mater. The good news is, I think he learned his brand of heresy at MIT, not at Wharton.
2. CNBS was full of Cramer and the Hair Spray Twins today, and even my hero, Mark Haines, piled on. Bears are idiots. Anyone who ever sold GE is an idiot. Fund managers who raised cash are idiots. Up, up and away, in our beautiful bubble balloon.
3. Oddly enough, nary a discussion of valuation or why a stock, that shall go unnamed and owns CNBS, should be valued at 30 times eps when it has growth of about 11%, even in the good times. Even when such growth involves some alleged shenanigans with the insurance co. capital gains.
So, keep your eyes open for terrorists and Bubblelonians. |
