Dear Mr. Market:

Do you remember what happened right before the peak of the dot com bust? Before rehashing any history let’s quickly revisit a quote that has been used and altered by several over the years:

“Those who cannot remember the past are condemned to repeat it.”

– George Santayana (former Harvard professor and philosopher)

Right before the needle slowly approached the overly inflated (tech/internet stock) balloon in late 2000…it was not uncommon for a financial advisor to field phone calls requesting to buy stocks like Cisco Systems (CSCO). OK…at least one could make a case for a company like that, albeit overvalued, as they actually earned money and had a viable business plan. It’s when those phone calls turned into “how about we also buy some of this stock I’ve heard called EToys?” Investors…(cough)…speculators poured money into so many internet startups with the hopes that these companies would one day turn profitable. We all know how this party ended and like many other past bubbles it won’t be the last. Continue reading →