Mat, I presume you garnered the response anticipated.
Frankly, Captain Jim pointed out the issue a long time ago. John Bogle created a 90's, and possibly beyond, equity market based solely, solely, on liquidity. We'll maybe! Hello, it works both ways!
I will respond that it is an ROE based market. How few will comprehend what ROE even stands for. Mr. Buffett, (I recognize the great investments in G, KO, and MCD may show a flaw) has been saying for some time that these ROE rates are absolutely unsustainable.
I stated before, I believe, how simple investment math is. It relates, as pointed out by Einstein to only 3 factors: Beginning principal, Investment Return, and Time! The problem for the depression children is that while they learned that E=MC2, or whatever the formula is, they never learned that there is a reason that hearses don't have luggage racks. Mr. G is a product of that era!
While I've re-programmed myself as a trader, I believe that the lowly FA will rise again,. It is simply part of the long-term equation. I refer to it as the Peter Principle (in honor of M. Minuit). All excesses, particularly those of a financial nature, will resolve themselves.
The only question, as Mr. G points out, is when. I thought it would be 10/26; now it looks like 10/19. If you are long. say prayers for IBM.
Berney |
