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

To: Crimson Ghost who wrote (4275)	6/4/2001 4:40:53 PM
From: pater tenebrarum	Respond to of 74559

i agree. we have been 'trained' by the WS propaganda machinery to ignore all traditional valuation yardsticks, as well as all fundamental data that might veer from the bullish unisono choir. nevertheless, the market will eventually return to value territory...and once there, stocks will be despised and declared to be 'dead'. in the meantime, 50% of US households are hoping that Uncle Al will be able to bail them out...

To: Crimson Ghost who wrote (4275)	6/4/2001 4:56:55 PM
From: Seeker of Truth	Read Replies (2) \| Respond to of 74559

I wonder where these percentages come from. Are they some average of all listed companies? or the S & P? or the Dow Jones Companies? If the latter I'd like to point out that foreign earnings are much more important than they used to be. Major U.S. companies have huge investments overseas now, much bigger than they were in 1968. This means that we maybe should be looking at the average of all share prices in the capitalist world to the GNP of the capitalist countries. That would be hard to get. I don't know how big an effect this factor has, but in any case foreign earnings should increase the ratio of profits to GNP. U.S. companies get at least a somewhat disproportionate share of world corporate profits. I imagine you would find Switzerland with a higher ratio than the U.S. To a somewhat lesser extent, the Netherlands should exhibit this phenomenon. But how do we get good data?

To: Crimson Ghost who wrote (4275)	6/5/2001 12:55:23 AM
From: pezz	Respond to of 74559

Every bull and bear cycle has some stat dragged outa the woodwork that has never failed until ........this time.I see no logical reason why this ratio should be relevant to the new bull.What do I care about the ratio of GDP to stocks? I buy stocks if I think they will go up..........like everyone else. As I'm sure you know when the FED starts cutting dramatically the market always goes up.......When an unstoppable force hits an immovable object the results will always be thought "ludicrous" to some. If t'were so simple as looking at this ratio we'd all be rich. No opinion on this subject is "ludicrous" my friend. Only being too sure of one's self is "ludicrous"