The More They Change...
...The More They Stay the Same!
There's an old saying that the more things change, the more they stay the same!
I think that's even more true on the Stock Market these days.
You may think that's a really crazy statement!
How could we possibly compare what is happening on the markets today
with how the markets operated five or even three hundred years ago?
People have been saying "It's different this time" for hundreds of years!
But not much has changed since Isaac Newton lost a fortune in the South Sea Trading Company fiasco of 1720.
This trading company had all the characteristics of a contemporary hot Internet stock,
with investors creating a mania over the company's prospects for success.
The laws of economics remain the same.
Whether it's the South Sea Trading Company in 1720 or today's Internet companies,
overpriced stocks are overpriced stocks. Period!
Clearly, many investors believe it's a whole new situation.
What once worked on the markets doesn't work anymore.
The types of stocks that once were the favorite ones are now relegated to the dark cold basements.
A whole brand new generation of investors has emerged willing to throw valuation to the thin windy air
and buy over inflated bubble companies with nothing more than high aspirations!
Drawing such conclusions is easy today.
It does seem that a new world market economy has emerged,
one in which only "technology" and other small companies matter.
But underlying all of this chaos are the ever lasting simple investment truths,
the same simple investment truths that worked decades ago and still work today!
In fact, by embracing these simple investment truths,
the same old and ever lasting truths that have been presented here in this book,
today's investors can achieve financial success regardless of changing market environments!
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