Word: manias
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Dates: during 1990-1999
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...Merger Mania...
Stock-split mania is another version of this greater-fool investing. Yes, studies show that stocks of companies that split their shares outperform those that don't. But that's easy to explain. Splits naturally occur in the best stocks--the ones that go up. The split signals management confidence, but the heavy lifting is done by management execution that delivers earnings. Do that, and the stock will go up whether it splits or not. Just ask Buffett--whose shares have risen, on average, 28% a year since...
Greenspan has a theory about what holds them together: "In analytical people self-esteem relies on the analysis and not on the conclusions." That must be it. The three men have a mania for analysis that has bred a rigorous, unique intellectual honesty. In the Reagan Administration economic policymaking was guided not by analysis but by conclusions--specifically a belief in so-called supply-side economics. No matter what the data showed, the results among Reagan-era economists like Arthur Laffer were always the same: tax cuts and less regulation were the solution. Rubin, Greenspan and Summers have outgrown ideology...
...signal? That's what happened to E*Trade customers for three days last week when a software glitch prevented the site from executing trades for an hour or two. The incident, which came only a week after SEC chairman Arthur Levitt warned traders about the dangers of Net stock mania, spurred New York State's attorney general to launch an investigation into the booming industry. Some online brokers, hit with a flood of service complaints, are trying to temper customer enthusiasm: Waterhouse Securities prohibits Web trading of certain volatile Net stocks, and Schwab and Discover have made it harder...
...that your potential losses are unlimited. There is no telling how high a stock will go. If you had sold short 100 shares of eBay just a month ago, you would have a paper loss today of $12,000. Professionals have lost hundreds of millions betting against Net mania. Compounding the problem, Net stocks have relatively few shares in circulation, and that makes them difficult to borrow and sell. The ones you would want to short--those without earnings or a compelling business plan--are precisely the ones whose shares are hardest to borrow. You can easily short...