Pictures of a stock market mania

-- Homer Beanfang (Bats@inbellfry.com), February 11, 2000

Answers

But its different this time, right? Isn't it?

-- JB (noway@jose.com), February 11, 2000.

Good one. Call me a doomer if you want, but I think we are w-a-y overdue to get our nails clipped! I do think it is going to be a memorable year indeed. [not pleasant, just memorable] Of course it`s not at hard stretch to say that now! But i have been rotating out my stockpile and repacing with fresh ones!

-- mutter (murmur@ya.com), February 11, 2000.

Thanks, Homer. Great link.

...The SPX represents well over 80% of the total market capitalization of U.S. stocks. Index gains since January 1, 1999 have come primarily from the speculative and aggressive growth side of the index. 75% of the gains have been the result of the performance of only ten issues; CSCO, MSFT, INTC, GE, ORCL, NT, SUNW, QCOM, C, & EMC. The collective P/E ratio of this group, not including NT which has no earnings at all, is an astounding 112!...

Let's repeat that, just for emphasis. Ten (count 'em, 10) stocks are carrying this market: Cisco, Microsoft, Intel, General Electric, Oracle, Nortel Networks, Sun Microsystems, Qualcomm, Citigroup, and EMC Corp.

geez...

-- DeeEmBee (macbeth1@pacbell.net), February 11, 2000.

This is a good site.

When the Great Bull finally starts to buck for its life, then the whole world will watch in awe as it struggles to loose itself from the lasso and bronc away from the fiery brand of death. This Great Bull will snort and froth with scary movements, very erratic!

Don't be afraid. Just get out of its way before it dies a violent death.

Unfortunately, many stupid investors will be lounging complacently in its path of imminent destruction.

We warned them, but they would not listen...

-- dinosaur (dinosaur@williams-net.com), February 11, 2000.

Wow!

.. or maybe "Ouch!

By the way, notice that with inflation numbers "cooked" last quarter - by artificially including a 27% DECREASE in computer prices, and artificially removing the energy price increases of 18% - the current dips and busts in the stock averages are happening with NO economic basis at all...it's hour-by-hour trading based on the latest "rumor" .... when (if) real economic problems hit (and they might, something just doesn't feel right....too many people are feeling the pinch of too little money and too little business for the economy to be as good as Washington "says" it is....

-- Robert A. Cook, PE (Marietta, GA) (cook.r@csaatl.com), February 11, 2000.

Stopped by for a lurk. Just to add, Cisco has 40% earnings growth in 1999 accompanied by 300% market cap growth. This simply can't last -- Cisco must give all but 40% of it back (a net 65% reduction in current market cap) to maintain parity with their January 1999 valuations (which were not low I might add.) Owners of Cisco may wish they owned some Crisco. (I couldn't help myself.)

-- Dave (aaa@aaa.com), February 12, 2000.