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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (86060)	11/29/2000 10:06:05 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

BGR, my reply was about the negative wealth effect and its outlook on consumer sentiment. These guys have seen 6 and 7 figure paper gains disappear so you feel less wealthy even if you are ahead which they are - for now. mike

To: BGR who wrote (86060)	11/30/2000 8:30:10 AM
From: Tommaso	Read Replies (1) \| Respond to of 132070

"But what if they were up 200% before the 50% dip? :-)" Then they are now only up 100% and still confident of recovering. If we get another 25% dip from the high, they will only be up 50%. If they are on margin they will be bankrupt. But 50% for five years of investing isn't very good. That's less than the long-term historical average for stocks over the past hundred years. If we get only an additional 5% dip from the high, they will be down to savings-account levels of return. That would be all right, except that many will have borrowed and spent their former "profits."