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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Terrapin who wrote (2832)	12/20/1997 1:59:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 78751

John, Where is the money that's been put in? Paper profits. And it can go into real losses. Can everyone that has money in the market cash out for the amount of their stock or mutual fund? This is the reason for the flow of monies into bonds. You don't get the return, but you can get the cash. IMO - this is the "house of cards" Mike was referring to. How many companies are paying dividends? What happens when the baby boomers start retiring and want to convert their growth stocks to income producing assets? Will the selling of growth stocks be picked up by new investors? Where does the money come from to replace the money being pulled out? Another point - with all of the money going in tax free, what will be the tax rate when those people have to sell assets because the monies isn't in income producing? Companies deep in debt don't pay dividends! JMHO Ron