Tomorrows market will look so much like todays market volatility it will make everybody dizzy. >There is no going back to 1987 type recovery or stability. Will have to adjust or perish
The market is out of control, on the way up, and now on the way down. If the Feds can't control it nobody can.
We have a problem with the techs. Too many shares on the market due to all the splits.
Taking one example: EMC
1.There are 85 mm US housholds, with about 60% owning stocks in one form or another.
2. There are 2.2 bil shares of Emc outstanding
3. EMC was at $104 in the last year
That computes out to about 440 shares of EMC for each shareholder at $104/sh = $45,760 dollars invested in
EMC stock per household..
This is total insanity -check my math- please. I still can't believe it.
Just one stock, not even a biggie like Csco, or a Msft or Orcl.
We were each and all going to provide Emc $45k just to have storage on the Internet ?
And each of us would have a gain of 20% or $9000 on the investment? Where would the money come from?
I know, it was supposed to come from the next victim who bought EMC at $120 , like chain letter.
Where are these shares? Well 1569 institutions hold Jdsu, 754 hold Cien, 689 hold Beas.
Bought with investors $'s
Every time they want a tax writeoff or get a bit of "up-tick" they are going to get dumped, with the money used to buy the next hot sector- like today its coal and gold, whatever.
More stocks than we think, will go to ZERO.
Now the good news is that stocks today do not have assessments as in the mining days, we can just keep the paper without paying more.
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