The famous Yogi Berra quote certainly applies to today's markets. Todd Harrison, founder and CEO of Minyanville, highlights the similarities of today's markets with the 90's Bubble from our very recent past. It is amazing how quickly investors forget.
Seems like old times
Commentary: The more things change, the more they stay the same
NEW YORK (MarketWatch) -- The more things change, the more they stay the same. Such is the story of life, and so it is for the markets as well.
I've been trading for 16 years, through Orange County derivative disasters, Asian contagions, new paradigms and lost fortunes.
Yeah, it's safe to say that I've chewed through a lot of markets, some very well and a few I'd like to forget.
When I sat down to scribe today's vibe, I weighed a choice of topics.
There are the all-time highs on the Dow, but that's old news despite the daily dance.
There's the risk in the system, from housing to debt to geopolitical fret, but nobody wants to read about that while the screens are green.
And there's private equity and merger mania but alas, we've seen that movie before.
Indeed, it seems as if we've already seen many of our current story lines, albeit different iterations. We call it Vuja De in Minyanville, the strange sensation that we've been here before but nobody remembers the ramifications.
To wit, when comparing the late-1990s, pre-bubble mindset to the modern day perception, it seems as if the names have changed to misdirect the innocent.
Back then, globalization was the justification for growth. Today, it is the root of isolationism and a path toward nationalization.
Back then, there was margin. Today, there is credit.
Back then, folks flocked to day-trading firms. These days, condo-flipping is in vogue.
Back then, politicians were targeting corporate America. Today, they've taken aim at lending practices.
Back then, we had the Greenspan put. Today, we've got the Bernanke helicopter.
Back then, Dan Dorfman moved markets with his opinions. Today, Jim Cramer is a self-proclaimed equity evangelist.
Back then, corporate malfeasance was being fingered by the misdirected masses. Today, insider trading is in the wake of the blame.
Back then, we had venture capitalists. Today, we have private equity.
Back then, we rationalized dot.com valuations. Today, we're collectively cool with debt levels.
Back then, Nobel Prize winners could do no wrong. Today, Goldman Sachs pedigrees are viewed in the same vein.
Back then, there was a scramble into index funds. Today, there is a race to chase the hedgies.
Back then, the FOMC walked the tightrope. Today, they're fitting a noose.
Back then, Julian Robertson capitulated. Today, Richard Russell is seemingly doing the same.
Back then, we had a financed based economy. Today, we have a finance-dependent economy.
Back then, Gordon Gekko was a financial icon. Today, or at least in production, he returns as a hedge fund manager.
