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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (9610)	11/27/1997 2:05:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 18056

In my 401K plan some 15% of my salary rolls into the financial system rather than pay half of it into taxes. My employer (LMT) matches part of it. As long as corporate employment is high we will see the effect of this huge stream of money and the enforced "purchase" of company stock by its employees. Since a pension plan has a 20-40 year time horizon it can easily justify paying 20% too much for a stock in 1997 prices. BTW, Joseph, the very basis of valuation of a stock market is wishful thinking, as a stock is always valued in the future, not the present:-)