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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (3178)	5/20/2000 12:07:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 3339

A stock represents a share of ownership of a company. Sometimes the prices of stocks are very far out of line with what that share of the company is worth. In 1982, you could buy shares for less than their proportionate value of the company's assets, let alone any prospective growth. Today, for many companies you must pay an infinite premium to own a share of some companies because the companies are losing money and the tangible assets are small. From 1978 to 1982, bondholders were enjoying terrifically high secure returns from treasury bonds and some of those who enjoyed them looked with contempt on those who were so foolish as to speculate on stocks. From 1996 to this year, some of those who have enjoyed spectacular returns on the stock market view with contempt those who have "missed out." In each case, the frame of reference of the previous few years was extrapolated to the future.