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Technology Stocks : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST

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To: Chuzzlewit who wrote (92173)1/28/1999 12:25:00 PM
From: JRI  Read Replies (1) of 176387
 
Chuzz- Totally agree with you about expectation of future cash flow driving investment return....But where does the availability of stock (supply) and demand play a role?....Could in a higher demand (and relatively lower supply) period of time..that stock prices would rise regardless of increases in future cash flows (for stocks on an individual basis)..

IE., the liquidity-driven market...

In my mind, increases/decreases of future cash flow does drive investment return RELATIVE to other investment ops (ie. of the % distribution of all funds going to stocks, what % a particular stock will get)....but supply/demand factors can raise the entire market (without an increase in future cash flows) and even raise a stock's price on an individual basis (internets)...many of which, of course, will be in trouble when the supply of their stock increases, or possibly before (the perception that the promised future cash flows won't be realised..Amazon?)

Let me know if I'm not clear here..Your thoughts?
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