Funny, don’t the events of the last 7 months remind anybody else other than me of those other bubble-frenzy times of 1999-2000?
By Daniel at 14 October, 2009, 12:05 pm
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Remember when, when all the analysts were spouting every other minute about the “new-internet-economy” metrics of measuring eyeballs and such didn’t make any logical financial sense at all but also no one wanted to miss out on that spectacular run-up in the markets?
You know the feeling - no, the economic events don’t make any sense at all so your head tells you it’s a suckers rally mania, but on the other hand you feel like a fool sitting on the sidelines when it appears everyone else (like even your dimwit brother-in-law) is jumping in with both feet and making money.
It seems like we’re in somewhat the same sort of situation now - the market is making and continuing its record run-up of over 50% off its March 2009 lows (albeit still significantly below its 2007 highs) and you feel like you should get in now, even though you’ve missed so much already, because you don’t want to continue missing out.
But on the other hand, you look at all the economic facts around you (increasing unemployment, dreary business prospects ahead, looming rate of foreclosures, etc.) and wonder just how this “new-jobless-recovery” can continue.
In a few months, we’ll all look back and see how “obvious” all the warning signs were, and how ridiculous the “new economy” theories were (much like we did in the aftermath of 2000), but like all manias, while you’re in it, it all seems to “make sense” at the time.
Just my 2 cents’ worth.
- Mrmister
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