Re: "With the recent wild speculation and high valuation we are certainly ripe for at least a correction."
This is a recurring and currently pervasive attitude among market participants, both on the professional level as evidenced by CNBC interviews and on the cybertalk level, as evidenced by sentiment on this and other SI threads. What we have seen for months, if not years, is relentless appreciation in prices accompanied by relentless skepticism as to the short-term direction. A powerful combination that has fueled rally after rally. One or two days down, one or two percent down, and they're interviewing the Prechter's and Metz's all over the place.
Yes, the Internet valuations seem insane. But if the growth of this electronic medium is representing a paradigm shift in the way we do business, the way we manage information, the way we communicate as a society, then maybe these valuations are more prescient then absurd. Is Microsoft overvalued as a software company? Maybe yes, but it may just as well be undervalued as an Internet company, maybe the dominant Internet company 3-4 years from now.
Brinker has repeatedly pointed to diminutive inflation as the number one underlying foundation to the great Bull of our time. I think that observation, that little bit of cumulative knowledge, garnered every weekend on the radio, is overpowering everything right now. So sentiment and overvaluation are out there, worthy of awareness and consideration, but insufficient to turn this market down from here. In any case, if anything more then a typical dip takes place, the market will have some s'plaining to do, to me,
Allan,
King of France |
