Back in 2000 the father of a childhood friend of mine had a few hundred thousand invested with me. He was a big exec at a large multi-national bank and threw me some ‘fuck you money’ to help a kid from Brooklyn out. We made some nice gains and then in March of 2000, after the NASDAQ topped out above 5,000, all fucking hell broke loose.
He ignored my pleas to “hang in there” and to “average down”–because he knew better. I remember the time he called to close his account like it was yesterday. While chuckling, he said to me “you are screwed for another 15 years. The NASDAQ isn’t going to come back for at least 15 years.”
Naturally, being inexperienced, in my early 20’s, rich as fuck, I laughed at him and called him a ‘crazy old man’ and we parted as friends.
Well, lo and behold, here we are, almost exactly 15 years to the date of his prediction and the NASDAQ is once again at 5,000.
Last go around, the big money was made in tech stocks. This time around, the spec money is being made in biotech. Will the market top out again at 5,000?
PFFFFF.
You have to be fucking kidding me. NASDAQ 6,000 here we come.
Top picks: WYN, MD, FL, HABT
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Amazing to think of all the technology advancement and innovation that occurred. Was the market that far forward thinking back in 99-00?
where’s kenny
I want my dow20thou cap
There is going to be a major asset squeeze. Rates are negative rates all over the world cash money floating around with water. Bears beware… you’re about to be hit by the big irrational.
True bears don’t care about parabolic
Only will heighten sharpen the contraction
beyond blatant bubbling go – right – ahead
True bears don’t manage money, they sell newsletter subscriptions.
Great feel good post Fly. I too remember that treacherous moment as if it were just a few years ago. $300 YHOO. $100 CSCO. MSFT doing stock splits every few months. And then outa nowhere BABABABAM! All was lost. Not all though. I was lucky. A few weeks before I got a call from a brokerage friend of mine who “just wanted to tell me about something interesting he had found…” It was Berkshire Hathaway A and B shares. I sold most of my holdings and transferred it all over to a handful of those B shares. For safety. Things were obviously getting out of hand and it was as plain to see as the nose on your face. New IPOs were popping up every day for companies who were far less businesses than mere lemonade stands and still the people were gobbling them up jacking the share price up into the hundreds by afternoon. Yep it was time to move our bundle to BRKS.B. Good thing too. Cause that bubble bursting caused a whole heap of trouble in plenty of other arenas for some time to come. When things go real hard I was able to trade in a few of those Berky shares to finish recording the bands new album when the money pulled out. We were able to finish thanks to those shares. And that little album became what we know today as the SLEEP WITH YOU album and the rest as they say is history. A plethora of hard worked for hit singles and a few tours around both the States and the EU later I often reflected on what might have happened had that call never came in. Or if I hadn’t had the foresight to listen to the guy on the other end of it. But I did. I’ll tell you what though…this time IS different. We may get shaky here and there. But we’re not trading PEs of 300 or 3000 today. (Well only the fools in TSLA, NFLX and AMZN). So I believe we’re in for the ride of our lives this year. Hopefully it won’t be too bumpy and it’ll carry us into the stratosphere.
Post link to a song of your liking from said album
I’m short $Bluestar
Sell SPY 214, buy SPY 207. Getting close to where you should buy long bonds, or if you must, TLT. 125.50 seems good there.
Nothing goes straight up, nothing goes straight down. Just as the Fed will not let a crash occur, they will not let any parabolic move higher occur – because that makes a crash more probable [look at Showtime’s comment above]. Make no mistake that this mkt is absolutely controlled. I have no opinion on that fact, I don’t care. Nobody should care about that. Why would you care about that? Honestly? That said, it’s great that people care about that because it makes this mkt possible. It’s a trader’s mkt and a long term investor’s mkt.
I remember getting wiped out like it was yesterday