Tax Guru – Ker$tetter Letter

Easy To See In Hindsight

It’s easy now for most people to look back at the dot-com stock bubble and recognize it as what it was, a greater fool pyramid scheme. A lot of good this Monday morning quarterbacking does for those who relied on investment advisors who were too stupid to see through the phony market back when it counted.

Unfortunately, historical memory is so short in this country that few will recognize it when it happens again, which is the only way that people can be warned about it. As someone who received a ton of criticism during the dot-com bubble for taking a contrarian approach and refusing to buy into its bogus assumptions, I don’t have much hope of things being very different next time around.

What never ceases to amaze me is how people who have been so incompetent in the past can even stay in business. For example, will toe-sucker Dick Morris’ ineptitude in analyzing the just completed political campaigns hurt his lucrative TV and writing career? Not likely. Similarly, how can any financial advisor who promoted dot-com stocks even have any clients left? Anyone who is foolish enough to continue relying on advice from any financial professional who fell for the dot-com bubble will receive no sympathy from me when they lose even more of their money.

KMK