If you haven’t noticed, another sign of the irrationality of the move in the market off the March lows is clear evidence that everything moved higher; including companies that didn’t deserve to. With that in mind, I look forward to investors and traders getting back to the day where they put their hard-earned cash into solid companies with good balance sheets, low debt and good future earnings capabilities. I must raise my hand as being guilty on this myself but as an reminder to us all, I submit this clip from a decade ago of six *hot stocks* during the dot.com bubble. [HT to Tim Knight for the clip – does he throw anything away? LOL]
Of the six *stocks to buy now*, only two remain trading [VRSN $23.47 and ARBA $12.10]. Whether they disappeared as a matter of delisting, Bankruptcy or M&A activity is inmaterial. The point is, I personally am now making a concerted effort in this regard when selecting my tickers to trade. Casualties of a war are inevitable and unavoidable and the same can be said of market bubbles. Many of the companies out there don’t deserve to rise with the cream of the crop. It’s only a matter of time until the fundamentals kick in.