Somewhere between then and now, we got used to the higher price of thestock market. Despite its gradual climb, I am continually asked about the market. Tune in to CNNor CNBC and you can listen to seven different experts give seven differentpredictions. There are alwayscorrections, just like there are always relatives at Christmas. See answer to the first question.
Research shows that there have been two main drivers ofthe stock market.
We can only look at historical trends anduse them to make assumptions about the future. According to John W. Peavy III, professor of finance at Southern MethodistUniversity, those two drivers have been interest rates and company earnings. WilliamSchwert claims similar results for the period 1889 to 1988. A host of things like mergers, management,misguided expectations, etc., etc., etc. This is beginning to sound like mydaughter's Christmas list.