Quote:
Originally Posted by arsenal
So how is this any different than the .com boom and bust of about 10 years ago? Is it not very similar? People speculating that a new .com will be the next hot thing, buying up IPO's, then selling them.
But not even in the sense of the housing market or the bailout. But the rest of the market as well.
|
In terms of speculation, yes it seems to be. IIRC, in the dot com boom/bust, people were snatching up whatever they could without knowing exactly what the business was about. Some fund managers were buying stocks based upon its name, without knowing what the business was about. If it sounded like high-tech, then buy it cause the stocks move up and down as a industry anyways. I mean, there were stocks that were getting traded with no dividend yeild - wtf? Why would anyone buy that? Speculation that the stock would increase in value and they could sell it for something higher. Finner or Slava could probably explain this better, but a key stat that is usually overlooked is the volume of trade for up/down that gives, and to me thats one of the scary stats because high volume trade indicates people trading on speculation and what you are gambling hundread thousands of dollars on is human / market psychology.
To me, thats very unhealthy.