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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Eashoa' M'sheekha who wrote (40443)	6/17/2000 1:30:00 AM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 42523

Killer, >>I think this is where some who follow the market very closely don?t get it.The average investor is still in there for the long haul and will continue to allocate a percentage of their income to the market..Right? First of all, I certainly do not claim that I can see in the future or do I believe anyone else can. I agree that people will invest their money somewhere, but this does not mean they will invest in overpriced stock certificates over the long haul. Capital will gravitate to where there is a perceived "best return" on that investment. If in fact we are going to have some inflationary times ahead...time will tell...there will be a ton of stock certificates that will not be perceived as a good return on investments. Heck during the last inflation period in this country, oil stocks, gold, real-estate and the long bond were great investments. Real-estate may not be as good now because of the tax law changes, but those double digit yielding long bonds we bought were great for a long time. The techs got pounded..remember the nifty fifty. Joan

To: Eashoa' M'sheekha who wrote (40443)	6/17/2000 10:39:00 AM
From: LLCF	Read Replies (1) \| Respond to of 42523

<I tend to go with the Baby Boomer theory of money flow into the market.It must at least be given deep consideration.> Yes, this is called the "modified greater fool theory", and has certainly been in operation. The 'Pig in a Python' version I read also predicted very low bond yields for the same reason which on could argue has also happened. BUT, one lesson I think one can take from that is that what is in operation is the boomers with their money, and that the link to 'stock market' is simply because that's what's working now. DAK