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Force Majeure Markets~ How long can this Alice in Wonderland Market ignore the numbers?
Way more to the point, how many are telling their clients the numbers not only do not add up to an All-Clear Bull Market, but are worse than they were before the Crash of 2008?
We wrote about the inevitable crash beforehand in The Gift © 2008, 1400+ pp, using common sense, which somehow disappears in the thick air of Wall Street, where they gambled away the rent money and were made whole by taxpayers for their billions in bonuses.
How did Alpine Capital in the mountains get canny?
We make no predictions. We apologize for our many past mistakes, painful lessons and battle-hardened financial scars that got us to where we are now, sadder, wiser and a little more objective.
One of the most painful lessons we had was after writing a newspaper column, Why Did We Pay too Much for Those High Techs?
As mutual fund manager, in the Spring of 1983, Merrill brought out an Initial Public Offering IPO Mutual Fund called Sci/Tech, at what turned out to be the high tech peak for a very long time.
Sci/Tech Holdings, featuring prestigious American Merrill, Japanese Nomura and Swiss Lombard-Odier asset management, was written up in Time Magazine.
http://www.time.com/time/magazine/article/0,9171,923526,00.html
Sci/Tech raised $835 million, an unheard of amount for a mutual fund IPO in those days.
The closest prior amount to that was the Manhattan Fund IPO, launched in 1966 with $247 million.
1966 was also a market peak, for 16 years, and longer in real terms adjusted for inflation. It even had the Bernie Madoff and Alan Stanfords of the day.
That somehow got lost in the pandemic enthusiasm for high tech funds that rivaled the 2000 peak Dot.com era.
http://stockcharts.com/charts/historical/djia1900.html
