If you look at the action and PEs of all the stocks that have DOUBLED in the past 5 weeks in a declining business environment, you only can come to one conclusion. The entire market is made up of three kinds of people.
1. Fraudulent crooks who should burn in, er, a very hot tub
2. Ignorant, dumb a$$e$ who still believe in the Easter Bunny and buy and hold till death
3. Intelligent people who have let greed overcome their ability to think rationally
I would never have believed that at these PEs in this environment, a stupid comment like, MSFT may settle their case, would so far outweigh the absolute avalanche of actual facts surrounding the economy. The reactions to nominal news -- such as a paid salesman saying he "thinks" NTAP will do okay this quarter, vs. the absolute "hear no evil, see no evil, speak no evil" attitude towards the almighty, GOD the USA calls the stock market, is so far beyond belief that words fail me. It's a shame that terrorists will probably get to claim to have destroyed the USA simply because of lucky timing, because the American people have done it to themselves -- by blindly following and allowing the Fed, the corporations, and the brokers to treat them like idiots and sheep. You cannot totally ignore certain principles simply because of greed. This will end soooo badly that I may consider moving to Australia before it hits the fan.
I remain,
SOROS |
