ABSTRACT
Only yesterday so it seems, Wall Street equity analysts almost unanimously proclaimed a new economic paradigm. Out with these old equity valuation models, out with fusty concerns about earning (actual or predicted), out with the business cycle, in with network effects, burn rates and global scale. Forget, ugh, prudence: caution is the new recklessness. Nowadays, as one reputable member of the breed then put it, the only danger is to be out of the market. Well, for the shrewd advice (as NASDAQ tottered at around 5,000) many thanks. For all those ‘busy’, ‘hold’ and ‘accumulate’ recommendations on stocks that cost $100 last year, and now cost $1.50, thanks a lot.
