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To: Edward Boghosian who wrote (18002)	9/15/1998 2:39:00 PM
From: Andrew Danielson	Read Replies (1) \| Respond to of 213177

<<When you use "real growth rate", what are you referring to-appreciation of the stocks in the averages, the GNP or whatever?>> Real return adjusts on an annualized basis for inflation. The statistics regarding equity appreciation over the last two hundred years are based on the S&P 500 (although the Dow produces extremely similar figures). The GNP has nothing to do with it. -- "But then you state that 20%-30% is unsustainable and if you agree to this and you feel it is unsustainable then a correction has to occur. I get the impression you think the correction would be a gentle one." Yes, of course 20 or 30% gains are unsustainable. Unsustainable in this context means that future gains cannot be that high. I am not saying that the 20/30% gains over the last few years must be erased at some future point, however. So if by correction, you mean a serious downturn (market cap loss) in the market, then I disagree with your assertion that a serious correction must occur. Andrew