To: ninenot
There's easily 3 times the number of people in the market than had been there historically, bringing roughly twice as much money into the system as before. Because profits have been essentially flat, that in and of itself has guaranteed that stocks are twice as expensive as "historical" models suggest (think supply and demand).
Note I'm not saying that the theories behind the historical models are wrong; just the numbers because of the additional demand.
1,960 posted on
03/24/2003 8:20:11 AM PST by
steveegg
(The French have removed 1 leg from the UN; it is now LN (League of Nations).)
To: steveegg
As long as the 10-year Bond return is less than 5%, Dow is a decent vehicle for investment---chosen well, of course. The test will arrive when foreign money moves out of bonds and yanks yield to 6-7%.
To: steveegg
Tdys pull back in the Dow is a reaction to the war slowing down and the heavy spin put out about problems.
It is so far a healthy reaction to the huge gains of 14 %, so far tdy it's only down 3 %. The war is making for a thin mkt where every move is exagerated, but overall the mkts are saying the war will be ok.
I guess they will oscillate for a few days and then run again.
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