stock reserves

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Fri Mar 12 09:03:37 PST 1999


From dhenwood at panix.com Fri Mar 12 08:37:12 1999

Grant of course reads this as further evidence of the market

top that's been forming for the last 15 years. I dunno, but it

does seem awful wacky.

I think you still have to look at supply and demand in this market. Why should it go down if the US Government, through it's best carrot: tax policy, is actively encouraging as many people as is possible (apparently now the Swiss as well :) to buy stocks?

The real question is where does it end, and how bloody will it be?

But at least for now, I don't really see it happening. The two trends of supply (shrinking: led by mergers and buybacks) and demand (increasing: led by tax policy, discount brokerage competition, technology, and a bit of self-fulfilling momentum from general mania) seem stable to me.

/jordan



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