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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (36383)	1/1/2000 4:58:00 PM
From: KyrosL	Read Replies (1) \| Respond to of 99985

why are the brokers horribly lagging the index Because they have lost pricing power, primarily because of online trading, and also because of the competition from banks, insurance companies and everybody else, it seems -- the IPO craze came just in time to save brokers from total devastation, but after it ends watch out below. What happened to broker commissions is a taste of things to come in a number of other service industries, by the way. Sure, the markets move in leaps rather than gradually -- but the long term 9% stock gain will hold true, if you average it over decades. I don't see the current tech bubble lasting more than a few months (if that). And I see deflation rather than inflation rearing its ugly head within the next couple of years (look at broker commissions, as an example). IMO, as the internet matures it will prove to be a powerful deflationary force.