The retailers really took a hit on the jaw even with massive price cuts. I found this bit http://www.bullishbankers.com/retailers-have-a-not-so-merry-christmas/ that just recaps the struggle thru the holidays. However, AMZN seemed to have their best year. Is this legit? I wonder if their margins were healthy. Do you think any of the retailers are a good investment these days? I personally think AMZN maybe a decent long term pick here.
Greater Fools Who will be the last Greater Fool, the Greatest Fool, the final Bag Holder???
THE GREATER FOOL THEORY- Popular among laymen but recently discredited by empirical research , greater fool's theory portrays bubbles as driven by the behavior of a perennially optimistic market participants (the fools) who buy overvalued assets in anticipation of selling it to other rapacious speculators (the greater fools) at a much higher price. According to this unsupported explanation, the bubbles continue as long as the fools can find greater fools to pay up for the overvalued asset. The bubbles will end only when the greater fool becomes the greatest fool who pays the top price for the overvalued asset and can no longer find another buyer to pay for it at a higher price. http://en.wikipedia.org/wiki/Dot-com_bubble
It seems most longs either don't understand numbers-valuation, etc or ignore them. They seem to follow Cramer's 2000 advice-
"...you have to throw out all of the matrices and formulas and texts that existed before the Web. You have to throw them away because they can't make money for you anymore, and that is all that matters. We don't use price-to-earnings multiples anymore at Cramer Berkowitz. If we talk about price-to-book, we have already gone astray. If we use any of what Graham and Dodd teach us, we wouldn't have a dime under management...." http://www.thestreet.com/funds/smarter/891820.html
Go to his article, @ the above link, almost all of his picks went to nothing.