criticized during the late 1990s as we continued to warn our loyal readers that
the dot com bubble would eventually burst and would be written about for years
to come. In fact, we stated that Harvard
would have case studies about the fundamentals of how many eyeballs were
looking at the internet stocks rather than P/E ratios or even EBITDA
ratios. We were charging a substantial
amount of money from our viewers throughout the 1980s and 1990s until we got so
frustrated by saying the same thing over and over, we decided to stop charging
for our research reports in 1999.
report entitled “Analyze This” in the mid-1990s was the last report we charged
for and you will be able to understand our frustration by quoting the first
paragraph of it now. “When stock market
history is written the current period will be looked upon as a textbook example
of the conditions that exist at a major market top, and future investors will
wonder how so many did not see it at the time.
This should not be surprising since one of the hallmarks of a market top
is that the majority are not aware of it, since a market top coincides with the
point of maximum optimism, just as a bottom occurs at the point of maximum
pessimism.” We went on to describe just
how outrageous the valuations were at the time as we pointed out the extremes
of earnings, cash flow, sales, book value and dividends.
of time during the housing bubble in 2005, 2006, and 2007 was just about as
frustrating to us as the dot com bubble.
In fact if you scroll down at the end of any of our comments you will
find a box showing “archives”. If you
click on it and type in “housing”, you will see that in each and every report
we warned about the housing bubble. And
now the “Central Bank Bubble” is becoming just as frustrating to us as the
other two bubbles.
tried to point out to our current viewers that the Federal Reserve has not
raised interest rates for the past 9 years.
Instead, they lowered Fed Funds rates to zero, and increased their
balance sheet from $800 bn. [More]