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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?


To: Shoe who wrote (3)4/20/1998 5:37:00 PM
From: cody andre  Read Replies (2) | Respond to of 3339
 
Insiders' signals:

1.- Goldman Sachs will consider an IPO in mid-June ($20 billion or
so valuation), Gabelli, Zweig and Frank Russell are considering IPOs.
2.- All banks are buying investment managers left and right and, all are into selling mutual funds, variable annuities, etc.
3.- The public thinks that it is a God-given right for the market to increase at 30+ percent per year.
4.- The US Congress wants to "save" the Social Security system by investing in the equity markets.
5.- Some public schools are "teaching" stock market investing. Considering that some teachers cannot spell or are afraid of PCs, it makes one wonder ...

Nevertheless, both the bubble and the hot air inside can grow hotter: impossible to quantify the "crowds". // CA



To: Shoe who wrote (3)4/22/1998 4:42:00 PM
From: Peter J Meza  Read Replies (1) | Respond to of 3339
 
Stock Market Capitalization as % of GDP

According to my CME pocket guide, as of 1/31/98, current stock market capitalization is 115.7% of GDP. The last time it was even close to this was, you guessed it, 8/31/29 when it was 86.97% of GDP. The chart shows that current capitalization is in "extreme overvaluation" territory (70.5% of GDP or more) and going straight up.