TODAY VS DOTCOM The time to be worried about a bubble bursting is when (i) firms miss estimates, and (ii) valuations are high. The Dot Com bubble burst when firms like Cisco, Gateway, and Exodus Communications stopped showing growth. And a lot of that growth was venture fueled — not fueled by free cashflow. What we have this year js a four year cycle mid term swoon. Take Lockheed Martin. It sold off b/c markets are pricing in a Dem sweep. Same story for datacenter linked stocks. Now $LMT is rally because midterms are priced in. (The US is re-stocking munitions, earnings are intact and FCF yield hit 7% two weeks ago when we wrote about it in the Lumida Ledger newsletter.) In fact, buying names that sold off due to midterm concerns I believe is a great idea.
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