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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Math Junkie who wrote (42114)1/14/2009 2:13:19 AM
From: Skeeter Bug  Read Replies (2) of 42834
 
Math, you look at history and you compare it to alternative investments and your best estimate of the relevant economic conditions.

it isn't a perfect process, but it is much better than valuing companies who've never made any money (and eventually never did!) into the billions during the internet stock mania and then expect the continuing of economic activity from home appreciation in spite of homes tripling against flat incomes.

both those moves were incredibly stupid and both back fired badly on all the true believers.
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