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The Sky Is Rising — Buy Stocks Low Now!
Back in 1998 I wrote an article warning people that the stock market was extremely overpriced. I was seeing obvious signs of idiocy in the stock market. The first big sign was a rampant hype of how great the big stock opportunity was in the popular press. I was seeing new investing shows pop up on TV. I was seeing young attractive women that look fresh out of am MBA program and dumb as dirt — CNBC's "Money Honey" Maria Baritomo on the floor of the NYSE gave a daily blow by blow account of how everyone in the public was going to get rich if they just bought in.
It all reminded my of Bernard Baruch’s account of why he sold out at the top of the market in 1929. On his way to work he stopped to have his shoes polished. The shoeshine boy said, “Mister, let me tell you a bout a great stock I just bought… I ain’t gonna be shining shoes for long.” Baruch immediately went to his office and sold all of his stock. Later he told a reporter that when an inexperienced stock market idiot of a shoe shine boy is giving recommendations it is time to get out. In 1998 airline stewardesses were bragging about their stock buys and counting the days to quit their job.
Nothing could have been farther from the truth. The inside corporate executive controlled media firms were pumping investment sewage into the minds of the public. Why were they doing this? Because they had enormous holdings of employee optioned stocks that they needed to dump on the public. That is exactly what they did and public investors jumped onto the insider Punji stakes. In late 1999 and early 2000 just six months before the great stock market crash every time a greedy inexperienced idiot in the public bought into the great American rip off and bought stock an insider sold out for extraordinary profits. The vast majority of all inside corporate executives sold out their holdings on a stupid, greedy, public whipped into a buying frenzy buy the U.S. media that is controlled and operated from behind the scenes by large U.S. corporate insiders.
I just read an article in Business Week entitled “Blue Chip Blues.” The article discusses the fact that the companies that comprise the S&P 100 have had a stellar 200%+ increase in earnings but share prices have increased less than one percent. This says that the public is not paying any attention whatsoever to the market. It is kind of like in high school where most of the kids paid attention to the cool kids even if they were stupid and wrong and can barely hold a job as adults.
We know in financial economics that the public is right in the middle of a major market move where all you have to do is buy and hold on tight — no brain required. The public is dumb as dirt at the bottom and the top of the market however. We are at the bottom right now. I know this because of the articles I am seeing about how much the stock market sucks right now. I was treated like Chicken Little in 1998 when I told everyone to get out as I ran around screaming “the sky is falling!” I was right. Now I am running around screaming the sky has crashed so buy, buy, buy! Yes folks right now is the time to buy and the sky is about to rise again. Chicken Little is always right in the end!
About the Author: Dr. Scott Brown, Ph.D. a.k.a. “The Wallet Doctor” holds a doctorate in finance and can teach you how saving the daily price of a cup of coffee at Starbucks can make you a millionaire in the stock market through long term stock investing. Dr. Brown's website is: http://www.walletdoctor.com/