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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (1510)	3/12/2001 3:14:45 PM
From: Ahda	Read Replies (1) \| Respond to of 24758

Because there is no value being created and probably you will soon see other parts of the world question the value of our dollar.

To: Ilaine who wrote (1510)	3/12/2001 3:24:31 PM
From: GraceZ	Respond to of 24758

People keep saying this, but since the money supply keeps growing, why doesn't the market keep going up? Because you are missing the other side of the equation which is rational (or irrational if you must) expectations that profits will grow and/or that stock prices will rise. Money has been flowing into big "safe" DOW stocks because money keeps flowing into mutual funds from pension plans and 401Ks, the mufus have to put it somewhere....but we've had very little price appreciation for the amount of money going in. Why? Because investors will only pay more for a stock if they expect it to be even more in the future. edit: Also, some of that excess money created is flowing into real estate based on some of those links you posted the other day. It doesn't have to go into the market. It will go where ever there is an expectation for return.