Gartman

Source: The Gartman Letter

Good excerpt from today's Gartman Letter:

We have some concerns about the markets at the moment; they do indeed seem “frothy.” Those concerns are heightened by the fact that late last week what we shall refer to as quasi-or-semi-serious investors put $225 million into Pinterest: a website where people post online images. We think Pinterest is a fine little business; it is pleasant divergence for stay-at-home Moms in the suburbs and grandparents elsewhere who can share pictures with one another of their children, grandchildren, recipes and like things. It’s a nice website; a pleasant visiting point, and perhaps eventually even a site that may generate some revenue of some sort. However, for now, according to The Wall Street Journal, the company has no 'meaningful revenue.' Yet Pinterest has a valuation of $3.8 billion.

We are reminded all too well of the heady days in the late 90’s and early ‘002 when the market went parabolic and lunacy led the day, but further we are reminded of Lord Keynes’ admonition that “The market can remain irrational far longer than you or I can remain solvent.” It is too early to be short of stocks predicated upon egregiously high…even silly… market valuations; but one doesn’t have to be bullish of shares such as this either. We shall let others wiser, nimbler, or sillier than we to participate in such things. We like steel, and copper, and ships and railroads and the like… always have; always will.

Source: Gartman

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