Tuesday, November 11, 2008

How rational is your exuberance?

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So, stocks were definitely overvalued on December 5, 1996, when NEWCAG called us out for irrational exuberance.

That was a 6,381.94 close. We'd have to lose another 26 % to get back there. If we all work together, we can do it.

5 comments:

mark said...

Hmmmmm. no my friend, stocks were not overvalued. WE were overvaluing stocks.

malechem said...

Hmmmmm, no my friend, a finger is not being poked in your eye. I am poking a finger in your eye.


How much sense does it make when I do it? It's not clear what your point is. And, frankly, I don't know how big a role you and I had in stock valuations

mark said...

Geeze, understand the concept, grasshopper. You were speaking as if stocks rise and fall of their own accord, the magic of the markets. Like "the glass fell from my hand" as opposed to "I dropped the glass." You already told me what you think of my economic theories, so I know I preach to the unconverted. But, I love a good lashing, especially from one as currently-unavailable as you: markets operate on trust, greed, panic, patience, luck..... all whims. There are those fortunate few who can read and predict the whims of the masses, and all the rest of us who can't. It's a spin of the wheel.

malechem said...

I apologize if I failed to imply an accord.

malechem said...

Today's close was 8282.66. Twenty Three per cent to go! Good work, guys.