Suppose you were a Master of the Universe who makes $2 million a year plus bonuses just for kiting stocks with Other People’s Money. Wouldn’t you want to bring the so-called ‘momentum stocks’ back down to levels where you could start the process all over again, attracting a whole new flock of rubes to fleece? Of course you would. And that is what I think is happening to stocks like Priceline, Netflix, Google, LinkedIn and Twitter. We could speculate about what sort of prices They might deem reasonable in today’s nut-so, quote-unquote investment world, but it would hardly be farfetched to imagine that Wall Street’s thimble-riggers will consider their goals met when Priceline and Google have symbolically fallen below $1000.
