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

To: robnhood who wrote (15034)	3/20/1998 7:33:00 AM
From: John Hunt	Read Replies (2) \| Respond to of 18056

<< How else do you explain why 2% of the people own 95% of the wealth? >> russell, Could the 2% be .................... fellow market makers and floor traders? <<< GGG >>> Have a happy trading day. John

To: robnhood who wrote (15034)	3/20/1998 9:17:00 AM
From: tekgk	Read Replies (3) \| Respond to of 18056

Russel, You are absolutely correct there are many reasons why a few have the money and the vast majority are doomed to relative poverty. The nature of this forum often results in over simplifications on my part - I apologize. My only point was that the herd runs over a cliff about once or twice a decade and that following the herd over a cliff on a regular basis be harmful to your financial health. The herd ran over the Japan cliff in 89, the gold and real estate in early 80's, the stock market cliff in 66 etc. etc. Go back and read any major publication just before the herd runs over an cliff - the results are the same ... they are bullish all the way to the bottom. The current "buy and hold" & "buy the dips" stock crowd are no different - they don't look at fundamental value, never adjust prices into constant currency units, don't realize that real bears last for a least a decade and they are almost as frequent as bulls. I suspect that most people have never taken a good hard look at an log graph of a constant dollar stock index. Another factor that the herd fails to realize is that the indexes throw out the losers and failed companies and replaces them with winners constantly. Add this factor to the graph and the world suddenly looks completely different. The flat market in the 70's suddenly turns into a 75% loss for the index and a near total loss for the unsophisticated investor that bought and held the conglomerates - remember them. -g-