Quotes From The Past
Sound familiar...never forget wall street only makes money when they can SELL PRODUCTS. They get paid to be bullish and drum up investment banking.
October 1999: James Glassman, author "Dow 36,000." "What is dangerous is for Americans not to be in the market. We're going to reach a point where stocks are correctly priced, and we think that's 36,000 ... It's not a bubble. Far from it. The stock market is undervalued." (Fact: dot-com PE's were astronomical, most over 40)
December 1999: Joseph Battipaglia, market analyst. "Some fear a burst Internet bubble, but our analysis shows that Internet companies account for only 7% of the overall Nasdaq market cap but carry expected long-term growth rates twice those of other rapidly growing segments within tech." (Fact: Internet Index lost two-thirds within six months.)
December 1999: Larry Wachtel, Prudential. "Most of these stocks are reasonably priced. There's no reason for them to correct violently in the year 2000." (Fact: Nasdaq lost 50% in 2000.)
December 1999: Ralph Acampora, Prudential Securities. "I'm not saying this is a straight line up. I'm not saying you can't have pauses. I'm saying any kind of declines, buy them!" (Fact: He also predicted a 14,000 Dow by year-end 2000, and an 11-year bull.)
February 2000: Larry Kudlow, CNBC host. "This correction will run its course until the middle of the year. Then things will pick up again, because not even Greenspan can stop the Internet economy." (Fact: This faux economist is still hosting a cable show.)
April 2000: Myron Kandel, CNN. "The bottom line is, before the end of the year, the Nasdaq and Dow will be at new record highs." (Fact: In September he even predicted a rally to 12,000 by election day 2000.)
September 2000: Jim Cramer, Mad Money host. "SUNW probably has the best near-term outlook of any company I know." (Fact: Within four months Sun Microsystems dropped from $60 to $30. Down to $10 in a year. Below $3 in two years.)
November 2000: Louis Rukeyser on CNN. "Over the next year or two" the stock market "will be higher, and I know over the next five to 10 years it will be higher." (Fact: The market continued sinking, we fell into a recession, and tech lost 70% within two years.)
December 2000: Jeffrey Applegate, Lehman Strategist. "The bulk of the correction is behind us, so now is the time to be offensive, not defensive." (Fact: A sucker's rally.)
December 2000: Alan Greenspan. "The three- to five-year earnings projections of more than a thousand analysts, though exhibiting some signs of flattening in recent months, have generally held firm. Such expectations, should they persist, bode well for continued capital deepening and sustained growth." (Fact: In 2008 he admitted he misled America.)
January 2001: Suze Orman, financial guru. "In the low 60s here, I think the QQQ, they're a buy. They may go down, but if you dollar-cost average, where you put money every single month into them, I think, in the long run, it's the way to play the Nasdaq." (Fact: You lose -- the QQQ lost 60% more by October 2002.)
March 2001: Maria Bartiromo, CNBC anchor. "The individual out there is actually not throwing money at things that they do not understand, and is actually using the news and using the information out there to make smart decisions." (Fact: Maria sounds more like a writer for The Onion.)
April 2001: Abby Joseph Cohen, Goldman Sachs. "The time to be nervous was a year ago. The S&P then was overvalued, it's now undervalued." (Fact: The markets continued down for another 18 months.).
August 2001: Lou Dobbs, CNN. "Let me make it very clear. I'm a bull, on the market, on the economy. And let me repeat, I am a bull." (Fact: The market was actually in bear territory for another year as the Dow and Nasdaq lost another third.).
June 2002: Larry Kudlow, CNBC host. "The shock therapy of a decisive war will elevate the stock market by a couple thousand points." (Fact: For Larry, war is just another "economic stimulus program." He also said the Dow would hit 35,000 by 2010.)
Yes folks, in spite of all this happy-talk nonsense (laced with enticing yet lethal rhetoric about "Climbing a Wall-of-Worry," "Suckers Rallies," "Dead-Cat Bounces," "Bottom-Feeding" and "Buy-on-Dips" opportunities) please be patient. Remember, it took 30 months to hit the last bottom as the Dow fell about 40% from 11,722 in early 2000 to 7,286 in October 2002.
Expect more of the same today, because "BS" is still Wall Street's official language. In both bear and bull markets the lure is the same, to get you to drink the Kool-Aid, to feed a new bubble and to make them (not you) rich.
My favorite quote is that the S&P will be at 940 by the end of Nov 09. Waiting anxiously to see if that one comes true.
My message is as follows: stocks stink and will continue to do so until they’re priced appropriately, probably somewhere around Dow 5,000Bill Miller Sept 2002
I have no idea on where the market will be 1/3/5 years from now, but my clients accounts will be up 3/5 years from now. That is all I really care about. …Jebediah
This is the funniest one yet !
HERE ARE SOME BETTER QUOTES, THESE ARE FROM ME, SO YOU KNOW THEY ARE AWESOME:
“I HATED BEING A BROKER AND CHARGING PEOPLE FOR SOMETHING THAT REALLY WASN’T WORKING” - MELETIO
"I HAVE NEVER BEEN A BROKER" - MELETIO
"THE MARKET WILL CRASH AT 2:15" - MELETIO, TWO WEEKS AGO, THE MARKET ENDED UP .5%.
HERE ARE SOME OTHER ONES SUCKAS.
“YO JOE!” GENERAL HAWK 1986
"KNOWING IS HALF THE BATTLE" FLINT 1985
"SWORD OF OMENS, GIVE ME SIGHT BEYOND SIGHT" LION-O 1987
"I LIKE BOYS" - MELETIO - 1996 - 2009, EVER DAY
LET IT RAIN SUCKAS!
The key to making money in stocks is not to get scared out of them. Buy great companies, diversify and think in terms of decades.
The four most dangerous words in investing are “This time it’s different”. Stocks go up over time.
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
The real voyage of discovery in life consists not in seeking new landscapes but in having new eyes."
– Marcel Proust
The chief executive of Bear Stearns told CNBC that despite recent market volatility,
“he is not aware of any imminent threat to the Wall Street investment bank’s liquidity.”
"I think maybe I did too much"
“I can honestly say, all the bad things that ever happened to me were directly, directly attributed to drugs and alcohol. I mean, I would never urinate at the Alamo at nine o’clock in the morning dressed in a woman’s evening dress sober.”
Ozzy Osbourne quote
“Live your daily life in a way that you never lose yourself.
When you are carried away with your worries, fears, cravings, anger, and desire, you run away from yourself and you lose yourself.
The miracle is not to walk on water. The miracle is to walk on the green earth, dwelling deeply in the present moment and feeling truly alive.
The practice is always to go back to oneself.
Thich Nhat Hanh quote
“Who in here has their Series 7 License? I do!!..Get out of here, Your fired”Ben Affleck in Boilder Room. I think if Obama or whoever wants to clean up the financial industry this may be a start.
There is a very revealing study by the Pew Center on state taxes, called “Beyond California” (http://www.pewcenteronthestates.org/). Everyone knows how bad California is. The Pew Center looks at how the rest of the states are doing, and focuses on 10 states that also have severe problems. Sales tax receipts are down 14% in Arizona, and state income taxes are down 32%.
On average, revenues are down almost 12%. Oregon has seen their revenues collapse a stunning 19%. New York is down 17%, with a deficit of 32%. Illinois has a projected deficit of 47% of its budget, second only to California with 49%. You can see how your state fares at http://downloads.pewcenteronthestates.org/Beyond_California_Appendix.pdf.
The Liscio Report notes that all states had negative year-over-year sales tax collections in October, and the weighted average decrease was 10.2%, down from a negative 7.2% in September. (www.theliscioreport.com)
Sales at Wal-Mart stores slipped by 0.4% in the third quarter. Actual government figures show that retail sales were down 1.5% in September from the previous month and 5.8% year-over-year. So how do we keep seeing headlines about retail sales being up, as unemployment keeps rising?
From John Mauldin’s recent email…
Muttley’s quotes are valid, and bring up a good point. Behavioral Finance studies shouldn’t only be applied to the general public. Many analysts, pundits, economists, and professionals tend to get emotionally caught-up in the irrationality of extreme bull and bear markets.When analysts are overly bearish, as they are now, it's a great sign there is more room to move at the top. When overly bullish, time to move some money on the sideline. Look at my example below... ""March 2001: Maria Bartiromo, CNBC anchor. "The individual out there is actually not throwing money at things that they do not understand, and is actually using the news and using the information out there to make smart decisions." (Fact: Maria sounds more like a writer for The Onion.) "" My favorite Maria quate was late 2002 when she stated something similar to, "The markets my never again get to a record high." Interestingly enough, less than 4 years later, there we were. This is a perfect example of irrationality and emotion both in a bullish, and then bearish manner.