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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Jamuck who wrote (5847)	12/5/1998 7:18:00 AM
From: accountclosed	Respond to of 14427

I understand your point and don't disagree with it 100%. But I do disagree with it somewhat. The other side of the coin is that markets are not stable. That "savings" might not be there when people go to look for it. If you were 58 in 1929 and put your "savings" in the market, you wouldn't have found much there when you turned 65. Consider the flip side of this debate about baby boomers all needing a place to build retirement funds. What will happen on the downside and the demand is on the redemption side and 14 billion or whatever a month is pulled? A lot of the "profits" that people have in the stock market are false. They are not really there when you take a macro view. The rhythm of the markets has been right. In other words 100 shares of stock can move a stock 50% in value if there is no one to take the other side of the trade. If there are no sellers, a market order to buy can really move the price of a stock. If we take the argument that money is pouring in at a 10 billion dollar a month clip, that makes for 120 billion a year. If you have more accurate statistics substitute them in. My point is that the Wilshire 5000 went up 200 billion yesterday. In the macro, paper profits are not real, not because they haven't been realized yet by a sale, but because they all can't be realized unless there is an ever growing base. I would say that most people putting money into 401K's consider it "savings" . My counterpoint would be that in investing whatever most people think is usually wrong.