As the long term shareholders of Comstock Capital Value Fund are
aware, we warned about the dot com bubble during the late 1990s, and the
housing bubble of 2004 to 2008. We admit to being very early in both
bubble predictions. Presently, we strongly believe that we are in the
process of building yet another bubble. It may well be called “The
Central Bank Bubble”.
It was very painful for Comstock to warn about these bubbles so early, but we must call the markets as we see them. Recall that Alan Greenspan recognized the dot com bubble as early as December 1996 when he warned investors about “irrational exuberance”. The warning roiled the stock markets both here and abroad before reaching a trough in early 1997, but the bubble resumed and continued for the next 3 years. In fact, the NASDAQ Index doubled from 1998 to early 2000. Dr. Greenspan subsequently reversed his feelings of “irrational exuberance” and instead proclaimed “no one is able to recognize a bubble until it bursts”.
It was very painful for Comstock to warn about these bubbles so early, but we must call the markets as we see them. Recall that Alan Greenspan recognized the dot com bubble as early as December 1996 when he warned investors about “irrational exuberance”. The warning roiled the stock markets both here and abroad before reaching a trough in early 1997, but the bubble resumed and continued for the next 3 years. In fact, the NASDAQ Index doubled from 1998 to early 2000. Dr. Greenspan subsequently reversed his feelings of “irrational exuberance” and instead proclaimed “no one is able to recognize a bubble until it bursts”.
No comments:
Post a Comment