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.
Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 161.43+1.4%Nov 12 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Terry D who wrote (10429)7/16/2002 10:59:14 AM
From: 16yearcycle  Read Replies (2) of 10921
 
I will not be surprised if when everyone looks back here in a few years, they will be wondering how they fell prey to the group negativity, just as so many had gotten caught up in the too rosey outlook.

This continues to bear a striking resemblance to 1987-1992 to me. The fed hiked rates and caused a valuation crash. The fed kept rates too high for too long. Companies with loads of debt got crushed. The fed then had to stay very liquid for a long time to save as much of those companies as possible. It was the S&L's then but it's the communication companies now. There was plenty of scandal and fraud to go around. There was war in the ME. Even with rates low and liquidity high, inflation didn't kick in, although gold rose for awhile. Eventually the system was righted and the equity markets went nuts. The main difference this time is that we went into the scenario with sky high valuations far exceeding anything seen in 1987, but not unusual for 1962 and 1969, and more folks in the game, so it is taking longer to get down to the relative safety of the bottom. No, we won't soar like 91-00, but I am not going to be surprised if from whatever the low ends up being this year, it will look a lot like 91-97 for quite awhile, before the pain begins again.
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