Over my four decades of investment experience I first encountered this “thinking on the margin” concept when the great “garbage market” of the 1960s, where any company whose name ended in “onics” soared, and ended . . . and ended very badly. Linear thinking, however, kept investors believing the “onics stocks” (read: technology stocks), which were the darlings of the late 1950s into the mid-1960s, would rally forever, ushering in a new era. Indeed, they did usher in a new era as the great bull market of 1949 to 1966 ended with the Dow Jones Industrial Average (INDEXDJX:.DJI) trading close to 1,000 for the first time ever. From there the “onics” stocks crashed, as the leadership “baton” was passed to tangible assets/stocks (read: stuff stocks), spurred by the ensuing inflationary environment
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