Hi Bonnie Bear,
Interesting post. It sort of reinforces my hypothesis, that the indices have this circular, feedback-loop, reifying motion, the index goes up because the index goes up because the index goes up, as it were.
For companies not on the index, too bad, wish you were here, don't you.
I do keep reading about new methods of fundamental analysis for high tech growth companies. Guess that explains why even though Microsoft trades at about 15 times gross revenue, it's not overvalued.
Quod vide rcmfinancial.com
Dell trades at 4.3 times gross revenue, it's not overvalued, but Compaq trades at 1.7 times gross revenue and it is overvalued. But maybe that's because you can't use the same unit of measurement for Dell and Compaq. Or something. Not sure why. . .
I have been buying fundamentally sound stocks with good growth rates at reasonable prices. I have a long time horizon, I can afford to gamble foolishly with my money. If such ridiculous ideas never come back into fashion, I'll think of it as (a mitzva)(storing up gold stars for my crown in heaven)(insert your own phrase here).
(I know, I know, this doesn't belong on the Big Kahuna board. Sorry, just wanted to respond to Bonnie Bear's interesting post.)
See you,
CobaltBlue
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