<<Has Wall Street Hit Bottom..?>>
Averages do not mean much here. Lets consider the case of an investor who had say $4 mil in assets in 2000
And with 70% of new moiney going into tech stocks at the time he was probably heavily invested there -walking on air expecting gains of another 50%
He may now have losses of 70% or 2.8 mil, and if somewhat wise has only 500k left in the equities plus 500 k outside and with big stocks getting crushed, his bonds or real estate are looking like gold fields.
IMO the result is that first we need a major sustained rally with increased confidence in management and government before he will move any money into the market ( by selling something else)
Even if his wife will permit him to re-invest.
Words from the Press and government have done nothing to increase confidence, since people are concentrating on what is wrong instead of what is right.
There is no rally in sight (bulls expect this earnings season may create one, but is unlikely to last)
The world population is 6,300 mm
How many are investors ?. In the US perhaps 60 mm of 287 mm or 20%
In China or India far less, but say 2% there and even less in Africa
Overall then not more than 5% or 315 mm
THEREFORE:
Csco has 7.17 bil shares outstanding and every investor in the world owns (on average)
23 shares Csco, plus 17 Ciiticorp, plus 14 Msft, plus 13 Orcl. plus 12 ATT plus portions of the other 5000 + public US corporations and portions of all other public corporations in the entire world.
Unless the US can stay on top of the heap, regarded as safest place to invest, some of these will qualify only as wallpaper.
Sig
(fill in any figures you want, it still says there are far too many shares of these companies outstanding)
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