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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: portage who wrote (21801)7/28/2002 2:00:54 PM
From: paul_philp  Read Replies (2) of 74559
 

Question : does knowledge alone equal increasing wealth, in a post bubble society ?


Knowledge without capital makes interesting dinner conversation but creates no wealth.

Don't judge the bubble only by it's failures. Take a hard look at the infrastructure that was built in only 4 years.


Reversion to the mean, baby


My least favorite theory. What is the economic justification for the P/E that serves as the mean. Does that justification pertain today? An argument along those lines would be interesting. The magic number theory is less interesting.

Paul
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