Forum Archive Index - November 2001

["Peter" <pmaiden@xtra.co.nz>]

If Mary has read a fascinating book Stock Cycles: Why Stocks Won't Beat Money Markets over the Next Twenty Years by Michael Alexander she wouldn't be saying "so you're best advised to sit quietly with what investments you've got. That's the only way to win in the long term."

 

Alexander's general conclusion is that stocks (in the USA) are so richly priced that prices are not likely to exceed by any significant degree the current near historical highs for the better part of the next generation.

 

But then again I suppose that Mary is pinning her hopes on dividends to keep her afloat. However little is gained from dividend returns if some of the original capital ( share price stagnation or erosion) is lost in the process

 

Cheers

 

Peter