NAS-duck WARNING?

September 27, 2003

I’m amazed to still see people like Joe Batipaglia on Fox News today hyping the bull market. He’s now moved into “bank stocks”. I don’t think he’s ever seen a stock he wouldn’t buy- with YOUR money!

Joe is symbolic of the perma-bulls that know no bad days to be buying stocks. There is no such word as BEAR in their verbage. Joe was pushing Nasdaq when it went over 5,000 saying it was headeed to 10,000+. He was a bull when it hit 4,000. He was even more excited about spending YOUR money when it hit 3,000.

Of course if it was a buy at 5,000 it had to be a buy at 2,500! When it fell below 2,000, the rally was on. Of course 1,500 was an absolute steal. Now with the Nasdaq below 1,200….oh well, you know the story. But there’s another very similiar story that you might consider before you give people like Joe YOUR money.

Germany had (past tense) an exchange much like our American Nasdaq. It was called the “Neuer Market”. In the last 2.5 years it has lost 96% of it’s value. There was a public announcement that “to reassure investors, the market will close forever.” REASSURE? After a 96% drop?
REASSURE who, what?

Get the picture? Duck, the Nas-duck is falling! And, this is no ‘Chicken Little” story.

PS. The Dow is very sick as well with September possibly (one day left to trade) being the 6th month in a row for it to drop, and that’s NEVER happened before in HISTORY- not even in the 1929-32 depression!

Written by Ernie · Filed Under Daily Commentary