As the long term shareholders of Comstock Capital Value Fund
are aware, we warned about the dot com bubble during the late 1990s, and the
housing bubble of 2004 to 2008. We admit
to being very early in both bubble predictions.
Presently, we strongly believe that we are in the process of building
yet another bubble. It may well be
called “The Central Bank Bubble”.
It was very painful for Comstock to warn about these bubbles
so early, but we must call the markets as we see them. Recall that Alan Greenspan recognized the dot
com bubble as early as December 1996 when he warned investors about “irrational
exuberance”. The warning roiled the
stock markets both here and abroad before reaching a trough in early 1997, but the
bubble resumed and continued for the next 3 years. In fact, the NASDAQ Index doubled from 1998
to early 2000. Dr. [More]