I always like to check in with Bill Fleckenstein from time to time:
I have no idea what drives the “thought” process on the part of those folks who buy tech stocks these days. Perhaps they have a romantic notion about how wonderful these names are to own. So they buy them, and therefore the stocks act “OK” — even though companies report disappointing news. In turn, that stock buying just begets more buying.
And what’s going to end this insanity?
To undermine that illusion of invincibility, it’s going to take lower stock prices. And what will cause lower stock prices, you might ask? Exhaustion. Exhaustion causes lower prices, regardless of what the bullish crowd wants. And, while occurring in fits and starts, I think that process might be under way.
