To: westpacific who wrote (91150 ) 4/1/2000 1:02:00 AM From: Scrumpy Respond to
Overvalued? Ask him to define "value" or send him the following:The intelligence of the average investor and worker. The immediacy of disseminated information , which I believe has become the great investment equalizer, esp. compared to it's availability ten years ago and only to the privileged, wealthy few, i.e. the "Gordon Gekkos" of the world. Just recently I met a NY taxi driver listening to market information and reacting this way and that to his portfolio performance. Very funny.The massive vested interest of the trading/investing public. At no point in mankind's history has a general population placed so much faith in it's future. Think about this... it serves as a deterrent to withdraw even penny from our economy and it makes one want to work even harder than Jenna. It also should send a diamond-clear message to Congress that squandering trillions on stale, ill-conceived, national defense programs DOES NOT PAY, NOR DOES IT SPUR LONG-TERM ECONOMIC GROWTH. America doesn't need a bazooka to hunt for squirrel, and artillery has a very low ROE. Listen up, Bush.The ease and low cost of trading, coupled with instantaneous access to the markets. Unlike years ago, such access was primarily the domain of ivy league boys clubs (and clientele). The low cost of trading has empowered even high-school kids to invest.Technology growth, fueled by it's long-term international consumption. Job mobility within the technology sector. I think this point deserves special emphasis and Greenspan never mentions it. The number of independent contractors and focused, team-driven companies has sky-rocketed. America is a veritable hot-bed of innovation and positive self-worth. The "independent" factor has placed enormous pressure on companies to equalize compensation, elevate the "value" of human resources, and vigorously compete for technical talent. This has forced symbiosis between manager and employee, or ends up forcing yet one more employee to turn independent, and seek out what he believes he or she is worth (and sans any wacky IT unions). The combined result, which differs significantly from traditional "economic" models, is NOT reduced business profitability, but increased efficiency, productivity, spreading of wealth, and higher tertiary consumption.An entrepeneurial climate available in and nurtured by nations that foster independence and individualism , unlike other nations, such as China. This is where I might break into the significance of capitalism, our patent system and the oft quoted "litigious", over-protective corporate legal system, buy my point is that any business chasing vague opportunities in third-world China will be hard pressed to thrive economically under a government which, first and foremost, doesn't share our values and our allies', knee-jerks to any ideological challenge, fears the very spread of information that has empowered us, and lacks consistent (and honest) application of law. This very fact keeps me from any long-term investment in TSM and anything internet "China". If Coca-Cola can't thrive there, then few can.
