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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Psycho-Social who wrote (83687)	2/19/2003 5:16:20 AM
From: Stock Farmer	Read Replies (2) \| Respond to of 99985

Your proprietary formula (or one remarkably similar) is well known among academics studying the market. A strong positive correlation exists between market PE ratios and an imbalance in the quintile between 40 and 60 years of age relative to other age quintiles. This is not counterintuitive. The market responds to the laws of supply and demand, and inward money flows to the market are dominated by the 40-60 age group. More inward money flows increases demand for investment vehicles and drives up the price of expected return, lowering yeilds and increasing PE ratios. The converse is also true. As far as not agreeing with Dent, what do you suggest we will see over the next decade or so? John