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

To: LLCF who wrote (17649)	3/31/2002 12:12:44 PM
From: Stock Farmer	Read Replies (2) \| Respond to of 74559

History never rep <skip> History never rep <skip> History never rep <skip... Do I sound like a broken record? LOL In all fairness to AC (or at least with more fairness than much of the board seems willing to grant), there is some merit to the "Supply and Demand" theory, aka "Lemma 2 of the Greater Fool theory", or perhaps more precisely the "What else is a fool to do" theory. Let's assume boomers are a generation pretty much entirely in their "cash flow positive" years, with net inflows into the equity market. Particularly considering pension inflows, plus 401(K) plans, plus the fact that managing one's own money is (was) fashionable. Such flows directed towards a "finite" pool that is not inflating fast enough by stock option exercise to absorb the incoming cash... well, supply and demand and the ratchet effect alone would lead to higher prices. At least while cash is flowing in at a rate greater than dilution. The issue is that there is a perception amongst the general population that they must invest. And that the best way to invest is to place money in the market. So the money just keeps pouring in to dollar cost average itself away. "What's a fool to do?" John