<![CDATA[There is No Time Limit in the Definition of a Speculative Mania]]>“I do believe there is a statute of limitations on a “bubble”. I think when prices continue to rise over a 12 year period and still show no signs of letting up, then it would be called a sustained trend.”
– reality check at VREAA 5 Apr 2012 9:57pm
Nasdaq composite 1986-2012 (click on the chart for large version)
After more than 14 years of run-up, the Nasdaq ‘corrected’ by over 75%, and 12 years later is still 40% below its 2000 peak.
In 1999 the vast majority of market participants were arguing that tech stocks were in a ‘sustained trend’.
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