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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Moominoid who wrote (3985)	6/4/2001 1:22:59 PM
From: Raymond Duray	Read Replies (1) of 33421

Hi David, I find myself largely in agreement with your analysis. I'm curious about this though: Personal saving is low in the US because of the way the accounts are computed (the saving is happening primarily in the corporate sector and increasingly so as dividends have fallen) and in an ageing society the retired will be dis-investing at a high rate relative to a younger one. When you say that savings are in the corporate sector, do you mean household savings are in the form of stocks and bonds rather than in passbook savings accounts? If so, then the $3-4 Trillion haircut that investors have suffered in the stock market since March 10, 2000 would seem to indicate to me that we truly aren't saving much at all. Regarding the dis-investing by the baby boomers, I see the stock market being largely stagnant after, say, 2006, due to this selling pressure and the fact that up and coming investors, the 20-somethings of today, simply aren't going to have the discretionary incomes to afford vast purchases of equities. No matter how Social Security and Medicare are re-jiggered, the burden on the next generation will be onerous. Ray :)

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