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