MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

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To: Stephen who wrote (14070)	5/15/1999 5:54:00 PM
From: j g cordes	Read Replies (1) of 99985

Stock options are only realized when exercised... perhaps you mean capital gains outside of wages? If that's the case, you'd have to examine those gains historically the same way wages & inflation have been compared. My guess is that there has always been a minority of investors who have substantial gains in the markets. However, I'll hazard also that a good percentage of that money is reinvested into new projects as seed capital or socked away in long term trusts or loaned out at various rates of return. Wage money on the other hand, is usually spent more quickly in the consumer marketplace, affecting the prices of goods and services. While its not fair, there's only so much you could reasonably buy if you for example had a ten million dollar stock option windfall. If you bought a Mercedes, a new porch, and a poodle you'd likely have an accountant try his best to shelter the rest from taxes. Therefore your question is, how does sheltered income from a booming stock market affect inflation?

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