History of bull markets rife with folly (The Worst Is Yet To Come)

CBS Marketwatch ^ | 30 July 2002 | Tom Calandra

[shrinkermd]

This seems to be a time for calm reflection.

[steve50]

The news fakers have been pumping out the propaganda for a week or so. Scares me when they are so desperate to sell a bill of goods.

[eno_]

It is an absolute no-brainer that the current rally, and probably then some, will evaporate with an attack on Iraq. P/E ratios are still high. Keep your powder dry. If you are super anxious about missing the train, start averaging in when P/E ratios get back to normal - at least you won't lose your shirt in the long term.

[Dog Gone]

Yeah, this may be a false rally, but use it! Place a stop loss on your stocks at a higher level. If the stock market continues up, great. If it falls to a new low, you've taken the profit and can buy back in at a lower level.

It's not that hard to make money.

[bandlength]

Meeoooowww, Arrghhhkssspppp, Boiinngg!

[Tauzero]

:)

[Tauzero]

pong

[rudypoot]

A deceased feline carum?

[DWPittelli]

Come on, if after each major bull market, the market would have to crash to BELOW the level that started the bull market, then the long-term trend in stocks would have to be negative. (And it's not.) Unless, of course, you pick and choose only the few major bull markets that fit your thesis.

[thulldud]

You heard the one about how many stockbrokers it takes to change a lightbulb?

Answer: one to unscrew the burned-out bulb and drop it, and one more to sell it before it hits the floor.

Verbum sat sapientis est.

[Destructor]

"Raging bull markets, when they crash, always end lower than where they started."

That's the time to buy!

[Destructor]

"Yeah, this may be a false rally, but use it! Place a stop loss on your stocks at a higher level. If the stock market continues up, great. If it falls to a new low, you've taken the profit and can buy back in at a lower level."

"It's not that hard to make money."

By George- I think he's got it! 'Bout time you woke up!

[Destructor]

"It is an absolute no-brainer that the current rally, and probably then some, will evaporate with an attack on Iraq. P/E ratios are still high. Keep your powder dry. If you are super anxious about missing the train, start averaging in when P/E ratios get back to normal - at least you won't lose your shirt in the long term."

If you make an intelligent investment decision, then you're not likely to loose your shirt in the long term. Your advice will be lost on those who only think in terms of the short term, "get rich quick" kind of investments.

[headsonpikes]

"It's not that hard to make money."

Mr. Buffet, is that you? ;^)

[Destructor]

What are you doing here? Nobody said anything about legalizing Marijuana.

[headsonpikes]

Good morning, twit. ;^)

[Citizen of the Savage Nation]

Another piece of crap, trying to get Democrats elected, article. These people need to be lined up in front of a wall and shot but unfortunately, they have a lot of help and will probably succeed.

[Destructor]

LOL!

[Destructor]

"Another piece of crap, trying to get Democrats elected, article. These people need to be lined up in front of a wall and shot but unfortunately, they have a lot of help and will probably succeed."

Maybe not. Remember the Dimocrats have drug-addled misfits like headsonpikes on THEIR side!

[razorback-bert]

A 36 percent decline. The high of the Dow Jones Industrials in 1968 was 985. By mid-1970, it had dropped to 631. This is very much like what has happened during 2000-2001 (through end of first quarter), when the NASDAQ declined by 64 percent and the DJI declined by only 16 percent.

The scary part of this discussion is that most of the 60's "Story Stocks" never recovered. Further, while the DJI bounced back 67 percent over the next 2 1/2 years, it then declined to a level lower than that of 1970. So, if there continues to be a parallel between the two markets, the DJI may not fully recover for many years and most of the Dot-Com stocks may never recover.

See more HERE