Only 2 weeks back I wrote about markets "Melt Up" which really turned out to be a "Meltdown. It all started with employment report on 2/2. DOW dropped 666 on 2/2 and continued into next week with 1000 point swings on DOW. What may have suddenly triggered change of course for markets? There are multiple theories being hashed out. Before we get into some of those, let's learn little bit about history which seems to be repeating every 10 years. Let's look at 1998 and 2008. Year 1998: This is the time US was in its longest bull market and irrational exuberance was in full force with "dot.com" bubble forming. Another president (with somewhat similar personal character traits) was in white house. Experts (including Nobel Laureates behind LTCM) were making one-way bets on "convergence" in bond prices. Questionable dot.com companies were coming to markets with billion $ valuations with just some eye-balls as "customers". Generally life
Commentary about markets and investment ideas and some random thoughts!