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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (1139)	1/24/1999 8:08:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

Wayne again appears in Barron's. In this week's Mailbag, Wayne's letter, captioned "Dangerous Situation" is the lead-off letter. One of Wayne's premises is that the cost of capital (interest rates) and the market price of capital (stock prices in relation to earnings) perforce must tend toward convergence in a free market. But, that could be said of the cost and price of any productive factor, for example, labor, or, ultimately, the cost and price of anything. But, would this not imply that capital and labor will ultimately become undifferentiated commodities. Isn't this what Marx predicted? Was he right?