SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: At_The_Ask who wrote (144295)1/17/2002 9:04:15 AM
From: Tommaso  Read Replies (2) of 436258
 
That's crossed my mind, too (that the markets are higher than they would be without Sept 11). I think the initial drop set off a lot of short selling that had to be covered the minute any buyers stepped in. Then there was all that cash that the Fed sluiced out, and all the automobile buying in November on zero percent loans, as well as mortgage refinancing. And then the Afghanistan thing seemed to go so unexpectedly well and quickly.

The main thing driving the market ultimately is (as we all say too often) real value, or lack of it, but the emotional swings drive things much further both ways than they ought to go. As stockholders and especially mutual fund holders look back further and further and see nothing but loss, the same kind of disenchantment will probably sink in as hit the gold market after the great boom and bust of the early 1980s:

kitco.com

Even as late as 1987 (I have tapes of Financial Network all day long the days of the crash) a large proportion of the commercials on TV were still for precious metals, advertising them as a safe place for the long run, a haven, inflation protection, etc. Now the commercials (on CNBC) are all for mutual funds and financial advice on investing in stocks.

When we start seeing interviews on the evening news with disappointed investors vilifying the market and the managers, and when P/Es on well-established companies are back below 10, the bear market will be reaching an end (IMO).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News