MM...I am "mythtified" as well. Here's my report:
1.At a Christmas party last night i got together with old friends form the area that i see from time to time but we were all there together. Hot topic was definitely the stock market. As I tried to explain about valuations, risk, rate of return, safety, etc. a glazed look of disinterest came over their eyes. When DELL, etc. was mentioned, I was the only one present that thought that DELL would not: A)split soon and b)double again quickly. When I asked "Why would DELL do that?" the answer was "Because it will, everybody likes it!".
2.This morning I spoke with a very successful local Real Estate broker that is selling his house to take advantage of the "free" 500k tax break on personal home exemption from cap. gains. I asked what he would do with that 500k(it is a sizeable chunk of his nest egg, I'm sure) and he replied, "There is only one place for it, the market!".
When this puppy turns into a foaming rabid crazy, there will be some serious damage done. Every time we bounce higher, the reinforcement to the dipsters is just that much more insidious. One guy at the party last night swore that the DOW returned 12% year since 1926. And there's no risk! |
