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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (67)	5/5/1998 9:01:00 AM
From: Teddy	Read Replies (2) \| Respond to of 14427

Thread: Here's a little lesson from history that i just ran accross. Something to think about anyway: "...Don't short the market because of a phenomenon like EntreMed. Or for that matter, don't bet against the market because of K-tel either, even though it was up another dozen or so points on massive volume. You see, at any given time there are always manias in the market. I mentioned the 1996 Iomega mania a fortnight ago. But how about the riverboat gambling mania six years back? Do any of those even trade? Or the biotech rally at the beginning of the decade, as the hunt for the next Amgen reached snipe proportions? Or the search engine craze a few years back? Or the love affair with the Checkers and Rally's of the world? Whatever happened to those red-hot restaurant stocks? Or the help desk craze just last year? Lots of red ink there. And yet, what has the stock market done despite all of these different manias? Gone up. It can go up because the supply-demand imbalances are no different from any other supply-demand imbalances in the real economy. Periodically soybeans will go nuts. Or tissue. Or lettuce. Or potatoes. Or even newsprint. But nobody thinks that's the harbinger for massive inflation. That's how you have to think of the EntreMeds and the K-tels. They are supply-demand imbalance bubbles, but bubbles contained to their industries.... ...So, go buy those S&P puts because of EntreMed. Go short the Dow. Good luck. In my book they just don't relate. They are a sign of speculation in one portion of the market. I am highly confident the speculators will be crushed, leaving the rest of us to make decent money in real stocks. As it should be."