July 15, 2002

Before the dot.com bust, this chart was circulated around the Internet warning us that AOL's stock price might be too high. The chart shows AOL's price through mid- 1999 against the price of RCA stock in 1929. While history didn't quite repeat itself since Steve Case wisely sold AOL to Time Warner in early 2000, the market since early 2000 bears a striking resemblance to the early 1930s.

There's another significant chart that must now be examined... more