For us it's easy to pontificate that the same holds true today with the new Nifty Fifty.
The recession of 1973- 74 destroyed the Nifty Fifty, whose earnings proved far more vulnerable than imagined.
Easy credit and the Nifty Fifty bounce in big-cap stocks in 1972 had created scores of bloated conglomerates.
He watched Wall Street pump up Nifty Fifty stocks like Polaroid and Kodak, only to see them plunge spectacularly.
In this negative real rate environment, a new Nifty Fifty group may emerge.
If it is wrong -- if the so-called new Nifty Fifty continue to levitate -- then it will lag the market.
You can see it in their profit margins, which have moved up from 10% to 14% since the Nifty Fifty years.
After all, what destroyed the Nifty Fifty in 1973-74 was not lofty multiples but a combination of rising inflation and the deep recession that collapsed earnings.
If the market is willing to pay 40 times earnings for Gillette, Coca-Cola and Pfizer, maybe airlines are a great contrapuntal play on the new Nifty Fifty.
FORBES: Market Trends: American Airlines: Buy it, don't fly it
Some of the Nifty Fifty have half a million shareholders.
FORBES: Market Trends: American Airlines: Buy it, don't fly it
Our concern: The index was so skewed toward a handful of large-cap growth stocks like Coca-Cola and Microsoft that the 500 was beginning to resemble a modern- day Nifty Fifty.
Mutual fund sales have slowed somewhat, but the public now has more of its savings capital at risk than at the peak of 1972, when the Nifty Fifty were comparably priced to the Nifty Twenty today.
Extraordinary Popular Delusions and The Madness of Crowds, although someone should revise it and add new chapters on the Nifty Fifty bubble of the 1970s, Japan bubble of the 1980s, Asia financial crisis of 1997, dotcom bubble of 2001 and US housing bubble of 2007.
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