Ring My Bell
Great post from Distressed Debt Investing today. This is yet another sign of wide-spread complacency as investors truly believe that Bernanke has eliminated all downside risk in asset prices. Please see the link below and engrain this picture in your head while navigating this “blow off” rally in risk assets. In recent weeks, we’ve begun to wonder when investors stepped into Mr. Market’s Time Machine back to 1999 (note CRM trading at 244x trailing earnings and the recent $50 Billion valuation on a social networking fad) . . . but it would now seem that we have jumped forward a few more years to 2006-2007 to combine the best of both worlds – a return to the momentum investing of the go-go tech days combined with the more recent free-money bubble in credit. The speed at which investors have jumped back on the risk bandwagon after being burned twice in the last decade by inflated asset prices, is nothing short of amazing. Fool me once, shame on you. Fool me twice, shame on me. Fool me three times?