This is one of my all-time favorite Saturday Night Live sketches -- Global Century Investments: Straight Talk About Today's Market. It was aired back in 2003. I think it is worth watching again now because
a) It's funny
b) The fundamental bulls who are jumping into this market now on the long side will become the bagholders
These are a few lines from the video that while told humorously as satire, are sharply true:
Peter Burke: The market goes up, the market goes down. But, over the long haul, the market goes up. [ a hand is raised ] Yes?
Investor #4: Is there any chance the stocks might rebound this year?
Peter Burke: I'm really the wrong guy to ask. I got completely out of stocks in late '99, and I haven't followed the market since.
Investor #5: You got out of the market three years ago?
Peter Burke: Yes. You see.. around that time, we at Global Century became convinced that stocks were headed for a crash, and that bonds were the safer bet. And, we were right. My own bond portfolio is up nearly 30%.
Investor #5: But, if you were moving out of stocks and into bonds three years ago, why were your brokers telling people like me to do the exact opposite.
Peter Burke: Well, obviously, if you think, as we did, that stocks are heading down, and you want to unload them before a crash, you have to convince somebody out there to buy them. That's just common sense. [ a hand is raised ] Yes?
So a question to all of the bulls:
Why are Wall Street analysts and brokers upgrading everything that can be traded after the market has gained 60% in just 8 months?
Read the highlighted line above: Well, obviously, if you think, as we did, that stocks are heading down, and you want to unload them before a crash, you have to convince somebody out there to buy them. That's just common sense.
Definitely watch the video. It is worth 2 minutes of your time.
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2 years ago