Management operates on the basis that products will be exactly what the user wants, that they will work as projected, and that affordability will not be a problem. There is a mantra throughout the company that designs and ideas are more important than product performance. Summary The concept of fad investing has dominated the American investment landscape for the past eight years. Since fad investing is highly emotional and is not anchored to earnings, values tend to be inflated well beyond what traditional methods would assign. Some very significant events have taken place on the economic front.
Interest rates are higher.
We have an energy crisis. The trade deficit is at record levels. Real estate is becoming less affordable. Technology is trying to develop new products for new markets. Lots of wealth has been lost in the high-tech stock market.