DrMadd,
I'll play the Devil's advocate here. When the stock market was going bananas, Greenspan was saying things like "unchecked exuberance." And he was proven correct. Many of those stocks were overpriced and overvalued and the knuckleheads who sunk their entire life savings into "tech" wound up hating life and looking at retirement in their '80s. I have friends who fit into that category. Now, all they can mutter is "Well, I'm in it for the long haul." Yeah. It'll take them about 100 years to get back to where they started. Greenspan is like a grandmother who wags her finger at you when you are climbing too high in the tree. We can ignore him and call him names and make fun of his obviously irrational fear. But at the same time, when we fall out of the tree can anyone blame him for saying, "I told you so?" The bull market is based on earnings. Big companies increase earnings, prices go up...rationally, reasonably, in small increments. Be satisfied with 10% a year. That is the conservative, well-founded attitude.
