Facebook History Repeats Itself
Worried about the stock market? Then consider this list. How many of the following do you agree are applicable today?
- Dividend yields are low.
- Congress will reject the President’s budget proposals.
- Congress will approve the President’s budget proposals.
- Recent dramatic rises in stock prices means Wall Street is betting the economy will improve.
- The Federal Reserve Board might raise interest rates.
- Much of the new money in stocks is coming from individuals fleeing low-interest CDs.
- The market’s P/E Ratio is too high.
- Gold has surged.
- Key economic indicators show the economy is still weak.
- Everybody in the media is talking about today’s market, not tomorrow’s.
If you think these statements describe today’s stock market, you’ll be surprised to know that I wrote this list in the summer of 1993.
I presented the above list as part of an article explaining that our outlook for the stock market was very good, despite the fears many investors were expressing at the time. The Dow was then 3500, and in the 10 years since, it has more than tripled.
When you read the above list, did feel I was describing today’s market? Last time, the stock market tripled. What will it do this time?
|
