Re: stock returns [was: Ignore the Obituaries, U.S. Reign Will Endure]

[Doug Henwood <dhenwood@xxxxxxxxx>]

On Feb 6, 2008, at 9:34 AM, Jim Devine wrote:

> the Hassett/Glassman prediction was based on the assumption that
> stocks were becoming as safe as bonds, no? How could that ever be
> true?

It couldn't. The book was incredibly dumb.

> BTW, Baran & Sweezy (1965) suggested that dividends were becoming as
> regular as interest payments. I think Galbraith pére may have made the
> same kind of suggestion way back then. If so, then stocks are more
> like bonds, at least for the blue chip stocks.

Citigroup cut its dividend. It does happen now and then. And most  
hardcore investors don't care about dividends - they care about  
"earnings," which are quite volatile.

Doug