Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ilaine who wrote (6299)	7/27/2001 2:41:10 PM
From: Mark Adams	Read Replies (2) of 74559

This comment from Chic In a sense, every dollar in the market has one foot into money heaven. suggests to me the only rational ones are the day traders who go home entirely cash every night. <ng> siliconinvestor.com MarketCap has one good use- that of ranking companies in terms of liquidity, in combination with volume. As mutual funds continue to grow in size, they require greater amounts of liquidity to move in the market without making waves. <rant on> This has the perverse effect of encouraging companies to grow in scale, regardless of the optimum size to meet particular market requirements. Companies that meet the mandate of growth are rewarded with higher stock prices and lower cost of capital. Companies that fail to grow eventually are left behind in the backwoods of the market. This trend, of mutual fund scale altering the economic landscape, probably creates as much distortion as that of indexing and closet indexing. <rant off>

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next