I2: Musings on a pleasant spring day- "The true purpose of the stock
markets is to make, of the greatest number of men, the greatest number
of fools."
Even if Bernie Baruch did not utter that assertion, he neverthe-
less might agree with it in principle. For now, we have the ascen-
dant bulls-- in the one case, paranoid; in the second case, blustery
or complacent. The "bad news bears," in Brinker's terms, have been
put to rout and "may wish they had never been born." This scenario
has held, at least, since 1991 and, arguably, from 1982. Buffett
says we have market valuations that do not allow for "mistakes."
Brinker reminds us weekly of an S&P 500 P/E that has no pre-
cedent in the history of the US stock market. Indeed, there may
be no margin for error in this wise.
I'm with Captain Kirk. Count me in the ranks of the paranoid--
ever mindful of Baruch's counsel, apocryphal or no, and ever
fearful of the dread X-factor.
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