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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.16+0.2%Dec 26 9:30 AM EST

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To: Stock Farmer who wrote (56842)1/22/2002 10:20:52 AM
From: RetiredNow  Read Replies (2) of 77400
 
I would argue that there are always exactly as many buyers as sellers. However, sometimes buyers are more motivated to buy than holders are to hold, in which case the holder becomes a seller at a higher price than they bought. Thus are markets made. So to revise his previous statement, I'd say that, taking the market as a whole, over the long term buyers have consistently proven to be a tad bit more motivated to buy than holders are to hold, which has resulted in a roughly 10% average annualized return on the S&P500 for the last several decades. Past is no guarantee of future returns, but I'd bet over the long term measured in a decade or more, we'll continue to see the same kind of pattern. However, some people think the S&P500 will only return something around 5-6% averaged annual returns for the next decade, based on their PE research and earnings growth potential. So that would make me a buyer who's more motivated to buy than those holders who are less motivated to hold. Thus they and I make a market. :)
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