You are watching too much Jim Cramer' mad money. By the way Cramer is already mad, he only needs to develop the money part.
There is trillions of dollars less of tradable equities then 10 years ago - we SHOULD be around 16000 given the p/e and p/b ratios. Also, bring on the inflation - now is the perfect time. People seem to be forgetting the upside to inflation: all that debt the US consumer has amassed over the past several years is automatically shrinking...
Trillions of dollars less than 10 years ago? I'd like to see the numbers that you are pulling out of your as.s
http://sfgate.com/cgi-bin/article.c...hive/2007/05/08/BUGHAPMMGA1.DTL&type=business We've lost almost 1 trillion in float since Jan 2006 alone. "So far this year, announced corporate buying has averaged $5.7 billion daily, which is 36 percent higher than the annual record pace of $4.2 billion daily in 2006."
I don't know if it will or won't... but I doubt that it will hold above it for long.... - my 2 cents.
You failed to add back the billions in IPO's and splits and the huge number of new products in the form of equity based ETF's. Not to mention the "global market place" which now exists that makes it easier to invest in markets outside the US.