Mark, of course you are right. But there is a point where irrationality ends and rationality begins.
Not every investment is priced the way Internet stocks are. In fact most are not. However, we do have good records of the Tulip Mania and how, from time to time, such a delusion of instant wealth takes hold on a crowd and effects the pricing of various popular items.
Gold, in fact, has also had its turn at the madness --- 1979-81 was exactly such a time. And it's my view, from being so afflicted, that the "lurgy" takes years to work out of one's system. In fact, I believe many goldbugs are still, today, dreaming about those days and imagining that they will return. |
