advalorem, I'd like to add that we now seem to have two economies going at the same time, the so called old economy of brick and mortar businesses and the new economy that seems somewhat virtual.
So what does this do for us? I think it gives us two glasses each about half full of water. Now we go outside and stand in the rain with a glass in each hand. When the economy in one side (old economy) gets in trouble, the market pours that economy's water into the other (new economy). Meanwhile the rain is slowly filling both glasses (retirement funds). When the other economy gets too full, the market pours some of that water back into the old economy's glass. Eventually, both glasses get too full and I guess we go get bigger glasses?
Anyway, I think the two market situation we have now hasn't happened before - they certainly seem to help protect each other. When one is sick, the other charges along and vice versa. The overall rise in the Dow isn't really all that much this year yet. NASDAC has really charged, but has since slowed. I don't think the market, in total, has grown too fast - especially when it's raining all that retirement money. |
