The roaring 90’s are all but a memory. It all ended in a mass euphoria for high-flying tech stocks and media hype for “new economy” triple digit p/e internet stocks with very little or no earnings and no track records. This once in a multi-generation great stock market bubble started bursting in March of 2000 and now thanks to Federal Reserve intervention (that includes radically low interest rate policy and perpetual QE used to monetize U.S. debt offerings and finance annual budget deficits) the stage is now set for the next stock market bubble.
The great American bull stock market of late last century started in the summer of 1982 but it was not until 1995, some 13 years later when the last to the party retail public got on board in mass. Will something similar occur with our current stock market as the retail public is just now starting to get involved with the current move from the March 2009 bottom. This American stock market will continue to move higher because the rest of the world is collapsing (global deflation) as international capital flows will run towards the U.S. Dollar and other U.S. markets. Stocks will be a big beneficiary of this move. To date, a bubble is nowhere to be found in American stocks as the S&P trades at about 16 times earnings at the end of 2014.
Notorious equity bulls Jim Cramer, Peter Lynch, Garrett Van Wagoner, Motley Fool founders as well as other flash in the pan financial hot shots who collectively just happened to be in the right place at the right time are featured in this 1997 time capsule of the beginning of the end of the last great bull stock market of the twentieth century. And please note a prophetic thought in the last minute of this documentary.
What does value investing really mean? Q1 2021 hedge fund letters, conferences and more Some investors might argue value investing means buying stocks trading at a discount to net asset value or book value. This is the sort of value investing Benjamin Graham pioneered in the early 1920s and 1930s. Other investors might argue value Read More