The "hysteria" factor that you mention is what makes the Y2K topic so interesting (and frightening) to me. Think of it: Y2K alarm, combined with end-of-the-millenium "silliness," all atop of a teetering market pinnicle... kinda gives a queasy feeling in the gut. We (being the rational, responsible people that we are) all like to invest based on market fundamentals, company profiles, industry trends... but I feel that there are much greater forces at work here, as we head towards the big 00. Perhaps we will all behave rationally: market analysts will factor Y2K expenses into projected earnings calculations, companies will continue to grow and improve throughout the conversion, stock prices will fluctuate accordingly and everyone will be a-ok. Maybe. Call it hocus-pocus, but if you ask me, the next few years look like a primo candidate for some seriously irrational behavior. I think a lot of investors are scared- there few safe places in the market to comfortably earn 8-10% a year (which is what many, many people want to do with their money) and I believe that the skittish folks are looking for a reason to get out. Shoot, even I've started reading articles like, "Now Looks Like a Good Time for Bonds." So what are these people going to do when all of the sudden they've got Y2K crisis hype in their face, every time the pick up the financial section or turn on the tube? There's been talk of a market crash for awhile now... Y2K may give 'em a reason.
Opinions?
-the artist |
