If this keeps up …

 

1. Wouldn’t worry over much about that chart.  It shows up every now and then. Not that the market can’t or won’t ever nip us on the butt. It does that to keep us awake.

   Look at 1 year charts for MSFT and what I call, the mighty Qs.  QQQ. The tech index.

   The same things that existed in 29 aren’t happening now. Other things will cause problems no doubt, but the things that resulted in the crash back in the day, just do not exist.

   Posted by peiper       02/12/2014  at  01:08 PM  



2. You mean that the SEC doesn’t allow you to leverage lots of shares with little money to back that leverage? Like in ‘29?

   Posted by Christopher       02/12/2014  at  04:24 PM  



3. As long as the thieves don’t hit anyone when they jump! I imagine that when it crashes it will be way worse than 29

   Posted by Chris Edwards       02/13/2014  at  07:48 PM  



4. Well now ... I guess I have to fess up. I wasn’t thinking in terms of leverage with little money to back up. Point well taken. And Chris Edwards is most likely quite right too because I believe, it could well be worse because there is so much more to lose. And no world war on the horizon to help us bail out.

   Anyway guys ... where’s your irrational exuberance? Alright, not too funny considering.
   However, I think I’m less worried in the way Christopher might be, because I was exposed to the good side of the stock market as well as the bad. But mostly the better part.

   But I made my original comment only because I have seen Christopher’s chart in the past.
   I recall the naysayers (who in the end proved right, many of them for the wrong reasons tho) claiming the sky would fall and putting up a chart with the 29 crash in the same way.
   But the crash they predicted didn’t happen. We’re talking 1929 prediction. Yeah, in our case the tech bubble burst but not before we paid off a mortgage, turned around and bought again in the desert on a golf course and paid cash for that. All thanks to Wade Cook, The Wall Street Money Machine author and seminar guru and of course, the fabulous American stock market. Did we get bit in the ass?  You bet we did. Big time too. But the fault was entirely ours. Greed .... But before that and when things were starting to turn around and others were (we read and heard) losing their shirts, we weren’t. Not then. And so because the good times were always so much fun and so much better, I suppose human nature takes over and it’s easy to forget the worse and only recall the good. 

   Oh, before I forget, with regard to the market.
   Where else can you buy a stock .... sell it for less than you paid ... and still make money? 

   That’s the market I remember.  Not the players we once were, sadly. Life not quite as exciting as the bubble years, but still in it.

   Posted by peiper       02/14/2014  at  05:46 AM  

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