>True-- although the basic dynamic remains that there is that demographic
>expansion and money looking for investments. Stocks may overshoot on the
>downside but if they stabilize for any period of time, I bet money
>relatively quickly inches back in and pushes it back to a more "reasonable"
>level.
Why should this money go into stocks? Chile's stock market has had a terrible few years despite all the privatized pension money going into it. I'm very skeptical of "weight of the money" arguments - they were common in Japan in the late 1980s.
Doug