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To: jhg_in_kc who wrote (149638)	12/21/1999 4:45:00 PM
From: Chuzzlewit	Respond to of 176387

jhg, What am I missing here? Quite a bit if you don't read the history of bubbles. Fads periodically hit the stock market. Prices periodically rise to unsustainable and unjustifiable levels, and analysts rationalize the prices by inventing "new" methods of valuation. And they tell us that this time it's different. We've experienced it in biotechs, the -tronics craze, conglomerates, Japanese golf courses, and other sectors. They were no different than the tulip craze in Holland. Right now this lunacy is centered on IPOs, tech stocks and internet companies. This anecdote might be an exemplar of what's happening. When I asked an acquaintance about a stock he was very high on, he couldn't tell me anything about the company. When I pressed him about what business it was in he replied "Who cares -- they make money". I don't know where the next bubble will appear, or how long this bubble will last. But this I know: these high-flyers will come crashing down sooner or later. Wall Street is littered with lore about bubbles and the madness of crowds. I suggest you read chapters 2 and 3 of Malkiel's book very carefully on the subject of speculative bubbles. TTFN, CTC