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A.J.,
If the common perception of the stock market is one of speculation without
risk, at least as far as buy-and-hold sales pitches imply, then what IS
"unreasonable enthusiasm"? It seems to me that the definition validates the
opinion that the current lofty levels of the market, combined with the
continued inflow of funds from an ob-sessed public, constitute a mania in
the classic sense of the word.
Awaiting the inevitable condemnation,
Dennis C.
dconn@xxxxxxxxx
>
> I guess this depends on how "mania" is to be understood. "Excessive or
unreasonable
> enthusiasm" is what the dictionary tells us - I'd want to say that in
this case it
> is neither. Looking at prices in terms of "intrinsic value" is out of
touch, as it
> neglects to account for the driving force behind markets today, which is
capital
> accumulation, with dividends only representing a paltry amount of total
expected
> return. The "mania" is the reality here.
>
> Regards,
> A.J.
>
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