In Forbes, Dreman, who is a conservative contrarian, wrote, "What you are witnessing today is a full scale investor mania of the sort seen in the tulip buying frenzy of 1636...
The epidemic of delusion is spread by the constant coverage of TV market channels, the press, internet chat rooms at a startlingly high rate. Add to this the profits most folks are currently making and it is easy to see how just how powerful the forces pulling additional investors in the mania are.
The stunning rise in prices has energized dozens of mutual fund managers who previously stayed aloof from the bubble. Even Magellan now boast Lucent, as well as other highflyers like Cisco, Intel, and AOL, in its top ten.
I can't say when it will end, but when it does, the losses in many stocks will reach 80%." |
