Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Ilaine who wrote (4284)	6/5/2001 2:52:20 PM
From: Seeker of Truth	Read Replies (1) of 74559

If someone decided to sell a lot of shares of company X all in one day, the price would certainly plummet, as you say. If some one else decided to buy a huge slice of Y, the price of Y would surely soar. But suppose these eager buyers and seller took their time, say 2-3 years, just a few shares every day. Wouldn't they get the shares at something close to the going prices? So I don't see the artificiality of the total market cap. But I do think that aside from local companies, e.g. utilities, railroads and such, most major corporations have extensive holdings outside the U.S. And I suspect that this business is growing faster than that in the U.S. I conclude that overvaluation of shares is probably sizeable, but not quite as bad as the bare numbers, not considering the foreign investments, say. Take the Netherlands, for example. Unilever and Royal Dutch Shell do almost all of their business outside of Holland. It's typical of many major Dutch corporations. The Stock Prices/GNP would be off the U.S. charts, I think.

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