The following article was written in 1996. The consequences of the “exuberance” of the stock market was seen a short period later at the dot com bubble burst. Then the tragedy of 9/11, the bank bailout, mortgage bailout and now today, we have the open manipulation by banks and the Federal Reserve. You have two choices:
1. Learn from history and get out of the 1’s and 0’s.
2. Jump back in before it is too late as outlined in this article: Crash Indicator: Mom and Pop Take the Plunge Back Into Stocks For Fear of “Being Left on the Sidelines”.
The decision on who will end up with your money and assets is up to you if you “want to play a game”.
David DeGerolamo
JOE KENNEDY, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured that when the shoeshine boys have tips, the market is too popular for its own good, a theory also advanced by Bernard Baruch, another vested interest who described the scene before the big Crash:
“Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day’s financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929.”
Are we at the same fatal stage in the market today, when people who aren’t expected to have stock tips have stock tips, including hot dog vendors, shoeshine boys, the homeless, pedicurists, barroom dancers, toll takers, and the trumpet player at the racetrack? Will stock prices fall off the cliff under the weight of enormous popularity?
