“Did any of you foresee the pop of the NASDAQ bubble back in ’00? Or the fall of the S&P 500, then, too?”
At the time I was a sell-side analyst. I wrote a research piece saying a decline of at least 60% was in order; that is, 4914 (price at the time I wrote the report) to less than 2000. My firm’s clients thought I was nuts. It actually declined further than that.
Bubbles aren’t hard to identify. They’re hard to resist and to time.
The role of the market, after all, is to get people bullish at the top, bearish at the bottom and confused in between. (I forgot who originally said that.)
