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To: Bid Buster who wrote (161373)4/22/2002 12:06:32 PM
From: Mike M2  Respond to of 436258
 
Bid, yes the the survivor bias - the stocks that underperform or go bust are eventually dropped from the indices. Todays average investor was over exposed to tech stocks that are down 50-95 % from the peak - they know the meaning of tough love . mike



To: Bid Buster who wrote (161373)4/22/2002 12:20:23 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 436258
 
adjusted for inflation it wasn't until '66 they had a real inflation adjusted gain and if they didn't sell in '66 they sat on a loss till '82

it is not nearly so bad when you add back the dividends paid over the period. the problem nowadays is that dividend yields are extremely low so investors rely almost entirely on capital gains even as the greater-fool strategy is breaking down.