analysis of dow last 115 years and outlook v2, page-2

Dear Zanzibar

intersesting analysis. I enjoyed reading your post and looking at your chart.

Baby boomers eh ... you gotta laugh. The generation of 'me' first.

Their lifestyle of self-indulgence has however gifted them with good health. Their generation was gifted with a quality education in the 1960's and 70's under Mr. Menzies and later Mr Whitlam and free university. They love the gym and lean meat. Most of them have given up the fags and now drink mid strength beer on the decks of their yachts. Most have read and apply enthusiastically the diets in Womans Day and New Idea. They jog and laugh with their friends with gusto.

And so to that end they will work into their 70's and live happily into their 90's. They will always have more than previous generations not only money wise but happiness and smartness.

As far as your graph goes ... for me it is as simple as cash deposits interest of 1-2% and Bonds in the 2-3% range in the USA (with growing insecurity in this investment I might add) : Compared to dividend yields of 7-8% in Publically listed companies. In Australia Cash deposits 5% Bonds at 7% compared to dividends of 10 and 11% in Publically listed companies on current prices. -with similar risk levels IMHO.

Investors at some point see value in share again. Dropping interest rates only fuels the shift back to shares. Correction can be too far off and once it kick starts it will pick up again.

regards

Capt. Goodvibes