Jonathan Hoenig - Heed Stock Market History; It Often Repeats
Back in the late 1990s, I can vividly recall investors confidently assuring me they were buying stocks like Intel, Yahoo and Cisco for “the long haul,” based on their strong growth prospects for the Internet economy. The Internet did boom, but the valuations of the stocks did not, with a few exceptions like Amazon and Priceline. Earlier this week, Cisco hit a new yearly low, less than a quarter of the price it traded at 11 years ago.
I somehow doubt all those investors are still hanging on. Indeed, as we wrote about a few weeks back, a lot can change in the markets over just a few years. Its why, as we often note, you can’t look too far into the future. The ideas that seem most promising today oftentimes end up looking idiotic even a few quarters down the line.