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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?


To: LLCF who wrote (1149)5/12/2003 9:22:06 PM
From: gpowell  Read Replies (1) | Respond to of 4904
 
I stated in one of the upstream posts: Money has been flowing out of equities and into bonds, money markets, and housing.

However, to be precise - price is not dependent on any particular quantity of equities being purchased. Therefore, equity prices and savings can rise and fall independently.

The only necessary condition for equities to rise is a fundamental conviction that they will do so, which occurs without a single share being purchased. Expectations are the driver of price.