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Strategies & Market Trends : Waiting for the big Kahuna

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To: Bonnie Bear who wrote (9069)11/4/1997 3:11:00 AM
From: Real Man  Read Replies (4) of 94695
 
Lots of talk here about how absurd "investing" is at this stage.
Nevertheless, if cash flow continues, and the average Joe is
being brainwashed by the media and always invests in the stock
funds, stocks will continue up, and the bears will have to part with
their $$. So, at some stage (mania) stock market is a Ponzi scheme.
Suppose it is. When does it end? When the cash inflow from average
Joe (probably almost constant) is no longer able to support the
exponential rise of the markets, not when fundamentals become worse.
(Joe does not care about fundamentals, does he?)
So the Ponzi scheme collapses. I wonder if some estimate along these
lines is possible. Total mutual funds infliows vs value and growth
of the markets. -Vi
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