We Are Witnessing The Largest Financial Bubble In History
April 19, 2012
With continued volatility in global markets, 40 year veteran, Robert Fitzwilson wrote this exclusive piece for King World News. Fitzwilson is founder of The Portola Group, one of the premier boutique firms in the United States. Here are Fitzwilson’s observations: “In our opinion, the beginning of the dot-com bubble started with the Netscape IPO in the mid-1990s. Prior to Netscape, companies had to have a track record of earnings and cash flows before going public. It was normal to receive a prospectus or two per week prior to the Netscape IPO. Afterwards, it became a flood, almost a daily occurrence to have prospectuses arrive at our research department.”
Robert Fitzwilson continues:
“Bubbles occur when perception achieves escape velocity from reality. Asset values routinely oscillate between over- and under-valuation. Indeed, in normal times, the only way to “outperform” is to have an iron stomach and solid conviction (to buy when everyone is selling and to sell when there is apparently no reason to do so).
As bubbles inflate, the oscillations generally reach levels that cannot be understood. On the downside, zero is the effective low. On the upside, however, once a bubble begins, valuation is in the eye of the beholder….