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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: GraceZ who wrote (264437)10/25/2003 5:22:00 PM
From: Mark Adams  Read Replies (3) of 436258
 
The bulk of jobs, and perhaps wealth, are created by small and medium sized businesses.

Those enterprises derided as 'microcaps one mistake shy of doom, therefore unworthy of consideration' re investment merit by WallStreet's capital allocation machine.

Thus, you have the bulk of societies savings (pension, insurance float, 401ks) being funneled into a narrow (yet large) niche represented by the financial markets. The trend towards indexing aggravates this. Increasing global savings chase ever smaller real returns.

Meanwhile, corporate insiders channel an increasing portion of cashflow into their own pockets via perks & stock options/buybacks. As WallStreet siphons off a portion in fees. Thus quietly diminishing the hopes of a quality retirement for a broad swath of demographics commonly referred to as the 'boomers'. Globally.

We wonder then about a perceived jobless recovery, and lack of investment opportunities, in a world where small enterprises may actually be starved for capital.

If private equity creates the wealth, which relies on the share market as an exit strategy, and the share market seems to effectively transfer or destroy capital over time, how do we find and open up the investment opportunities of the future to J6P?
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