Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (3685)	5/17/2001 12:46:30 AM
From: Mama Bear	Read Replies (1) \| Respond to of 74559

"Fewer people were in the market" I think that there may be less folks in the market now that they are not covered by defined benefit plans. It is a mistake to say that someone who had a company pension was not in the market just because he had no direct ownership of stock. The company's pension plan put money aside, and invested it in the stock market in order to provide that pension. Even the most profligate employee had that benefit, and the corresponding stock market investment because of it. Now the profligate are allowed to choose to spend that money, which they do, because it is their nature. So there is no stock market investment for them, where there used to be. The cautious who do contribute to a 401k leave their money in money markets, where there would have been a stock market investment by the pension plan in the past. The reality is that the risk of stock ownership has been transferred to the employee by the switch to defined contribution plans. Regards, Barb