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Politics : Ask Michael Burke

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To: Eggolas Moria who wrote (51174)3/10/1999 12:22:00 PM
From: Mike M2  Read Replies (1) of 132070
 
Gary, I think it is very useful to illustrate risk . to evaluate under /over valuation look at historical parameters. i think the low for mkt cap GDP was 33% in 1932 - keep in mind GDP contrated considerably. I know ignoring fundamentals and buy & hold has been quite profitable but i cannot see it working indefinitely into the future. Somehow i have trouble accepting the notion that the stock market can continue to grow at a faster rate than every measure of economic activity. Sounds like a sophisticated confidence game to me. Mike
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