Monday, June 05, 2006

Point of Maximum Financial Risk

Did anyone learn a thing from the Nascrash of 2000? If so, what? Once again, it's as if everyone seems to think they can get out at or near the top. Not only is that mathematically impossible, I get the strong feeling that most players are not even aware of the enormous rise in risks even as there are clear signs that the global liquidity ship is beginning to sink.
From Mish's Global Economic Trend Analysis.

4 Comments:

Blogger free_fallin said...

The way the nasdaq went for me was my stock was at 100 - I'll sell when it hits 120. Oh, it's at 90 - it will go back up. 80, it can't lower than 80. oh shit, 50 - there goes my net worth. 40 - I should have sold at 70.

I can see the same greed/denial happening in real estate. It is just going to take a couple of years.

Jun 5, 2006, 12:46:00 PM  
Blogger anon said...

I think we're further along the process - nearer denial - since this is a graph of sentiment and the graph of actual asset prices is offset somewhat.

Since we're now seeing price declines, we're probably further along the psychological rollercoaster.

Jun 5, 2006, 1:46:00 PM  
Blogger hemorrhoidforhousing said...

I think we are somewhere between Anxiety and Denial myself.

PS: I was not being sarcastic over on patrick.net. I really like your blog. Please keep up the good work!

Jun 5, 2006, 2:56:00 PM  
Blogger Marinite said...

hemorrhoid --

No worries. And thanks for explaining why you chose that handle (vis. your follow-up post on Patrick.net). I've wondered about it.

Jun 5, 2006, 5:01:00 PM  

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