[quote=moneymaker]Nice chart Rich, in 1986 interest rates were very high, in 1997 there were massive layoffs from government contractors, the 2006 bubble was from fog loans, 2009 and 2012 could be called dead cat bounces, current highs are due to low interest rates. How easy it seems to explain stuff with hind sight. I think the recent dip could be because of Qualcomm or the fear of rates going up.[/quote]
Except, some of those explanations don’t make sense. Rates were high in 1986, but they were a LOT higher in, say, 1982. The govt contractor layoffs you refer to happened in the early 1990s, not in 1997.
It’s harder than it seems to explain why valuations do what they do. All you can really know, in my view, is that if they are high they will probably eventually go lower, and if they’re low they will probably go higher… other than that, who knows.
