Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (2126)	10/29/1999 11:11:00 AM
From: pater tenebrarum	Respond to of 3543

Carl, i expected a retracement of sorts, but the violence of this move caught me by surprise...it looks like we're on track for a blow-off move to new highs.

To: Bilow who wrote (2126)	10/29/1999 12:59:00 PM
From: Dan Woodbury	Read Replies (2) \| Respond to of 3543

Bilow wrote <<I think the Tulipomania goes on until mom and pop get laid off and have to start living on their stock market "savings". This won't happen until Greenspan cold cocks the economy. And that won't happen until we see inflation so obvious that there is no denial possible.>> This is one thing you "bears" have to get a handle on. As long as the economy is doing great guns, which it is, and people are employed and feeling rich, which they are, there is no way a bear market is going to persist. Yes, when the economy does falter stocks have a long way to fall. But since that is not going to happen this month, people are buying and buying and buying. The bubble isn't going to pop until the market leaders dissapoint and actually miss Wall Street estimates. But since estimates are so "cooked" this isn't going to happen until something truly unexpected shocks the system. Face it, as long as GE can grow profits a steady 12-15% a year, quarter in and quarter out, who cares if the stock trades at a 100% premium? There isn't really any reason why the stock couldn't trade at a 200% premium. All that matters today is the perception of value and, since the risk of being out of the market is bigger than the risk of being in the market, its easy to see why the inflation in market valuations grows bigger and bigger.