NEW YORK ( TheStreet) -- I'm getting a very familiar feeling when I look at what's happening with Tesla (TSLA - Get Report).
I can remember back in March 2000 when the
was breaking through 5,300 and dot-coms were trading on very, very thin air. In fact, that is about all they were trading on. Many of these recent initial public offerings had very little in the way of plans beyond the IPO moment.
was trading at a PE ratio range in the mid-30s back then, and the norm for Nasdaq stocks was usually somewhere in the triple digits. Tech analysts and go-go mutual fund managers were the rock stars of the day. The saying going around the market was, "Valuation does not matter anymore!"
How could valuation not matter anymore?
Well, here we are an unlucky 13 years later and we still are not even close to repairing the damage that was done to the Nasdaq in the years that have followed its 5,300 peak.
Oh, we are finally closing in on 4,000, but 13 years to get this far? I guess valuation matters after all.
It seems that every so often investors somehow lose their sense of valuation when yet another bubble hits. Our two strongest emotions as human beings are fear and greed. We can do silly things when greed sets in.
Like buying shares of Tesla before everyone in America is driving a brand-new, shiny, red, electric car.
It is funny how greed can make us do silly things. It is like we have to get in before it is too late. Unfortunately, by then it is almost always too late!
Why am I picking on Tesla? If you follow me on Twitter, you will have found me warning about Tesla's chart and valuation for the last several weeks.
Data from Best Stocks Now App
I document every tweet about stocks that I send out on the Best Stocks Now App. I think that the record is perfectly clear on Tesla.