I don't think so.
Perhaps you should
review the economic lessons of the late
All it would take now is a little Middle East crisis
or some other such thing and this whole market will
be bone dry in no time flat.
to value creation in an economy? If corporate
profits are increasing and worker productivity is
outpacing inflation and wage increases, then we're in a
growth cycle. If the trends reverse themselves, then we
could be headed for contraction.
This does not
mean more money for AOL. It means more trouble for
AOL. They don't grow as a company because people buy
their stock. They grow when their profitability and
As is usual practice, also AOL long term charts
have an exponential $-axis. The danger comes into the
play, when orders of magnitude are represented in one
chart. In summer '96 AOL dropped from about 8 to 4$
(corrected for all the splits), but on a logarithmic chart
it looks like a 33% drop, at least close to the true
50% drop. But our days 50%-down-disaster from 175
down to 87.5 (allow me to take AOL stock price of next
week) looks just like a 13% loss, if plotted on the
logarithmic chart. So, we just observe a little volatility,
don't worry, guys who bought at 175.