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Dot.com bubble begins to inflate again ?

I  dont think the analysis is correct. The last bubble was a real bubble. You had crazy sites that used to hire hundreds of employees and the only revenue came from a little pop up ad. All those companies are gone. The resurgence we are seeing is real.

http://news.independent.co.uk/digital/news/story.jsp?story=482929

Excerpt

<<prices of tech companies, which started rallying last year, have continued on an upward path this year and, with the renewed interest the sector is seeing, that looks set to continue, for the short term, at least>>

Karthik
Tuesday, January 20, 2004

The four most expensive words in the investment business....
"this time it's different"

Tapiwa
Tuesday, January 20, 2004

This time it *is* different.

Tulip bulb anyone?

www.MarkTAW.com
Tuesday, January 20, 2004

At least when this bubble bursts it will affect people offshore.

sin-ick
Tuesday, January 20, 2004

Every time it IS different in some ways, the same in others.  The few people who can manage the new situation successfully are aware of both characteristics.  Handling these situations is very difficult as you need to know the characteristics of the past situations and draw conclusions about the logical consequences of the characteristics of the current situation.  VERY difficult.  Almost all of us will be fooled again.  I recommend "Extraordinary Popular Delusions and the Madness of Crowds".

Barry Sperling
Tuesday, January 20, 2004

Barry, great recommendation.

The FT syndicated it a few years ago.

Tapiwa
Tuesday, January 20, 2004

Plus, you can get the entire text online

http://www.econlib.org/library/Mackay/macExContents.html

Tapiwa
Tuesday, January 20, 2004

Stock prices rise != bubble

SC
Tuesday, January 20, 2004

Pretty soon we're going to have "Hop On The Next Bubble Before It Bursts" guys with everything invested in tech stocks, with a heavy "Get me the heck out of here when it starts to drop" scripts in their daytrading accounts.

Wait, I'm sure that's already happened.

www.MarkTAW.com
Tuesday, January 20, 2004

(buying and selling based on emotion) = bubble

apw
Tuesday, January 20, 2004

This time it really *is* different!  You guys are going to miss out if you don't jump on board.

soon to be rich
Tuesday, January 20, 2004

Although the high and rising price of gold is something to keep in consideration.

apw
Tuesday, January 20, 2004

"(buying and selling based on emotion) = bubble "

No, not true.  There is a little bit of correlation, but no causation.


Tuesday, January 20, 2004

Stock prices go up and down all the time on an emotional level.  That's not a good way to tell if it's a bubble.

I suspect that at least part of the raise in stock prices of some remaining dotcoms is because they started out as "quick buck" stocks, with far too much emotional value attached.  Then they were "Major risk" stocks for those who wanted to wait out the  crash.  Most people weren't going to want to pay much for the stock, because it was a gamble.

Now they are buying them with the attitude that they will become normal, profitable enterprises like non-dotcom stocks.

Flamebait Sr.
Tuesday, January 20, 2004

>> Pretty soon we're going to have "Hop On The Next Bubble Before It Bursts" guys

Priceless, Mark! :)

Alex.ro
Tuesday, January 20, 2004

Multumesc, Alex.

www.MarkTAW.com
Wednesday, January 21, 2004

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