There is no real linkage today between the stock being bought and its current price. All the buyer expects and anticipates is that its value will appreciate like real estate values did in the 80's. Today's equity investor is buying appreciation, not ownership of a company which is what stock really represents. The only real value any stock has is on the day and time it is sold for cash, that is liquidated. The Texas real estate market is a valuable lesson.
Overheated markets blow up.
Our chat is now at an end. Thanks to you, Jerry, and to all our users for sending in so many questions. Look for a transcript of this chat on our site later today.