I’ve posted Entry #87 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s titled Bull Markets Transfer Wealth from One Group of Investors to Another.
Juicy Excerpt: Bull markets do not generate wealth. Bull markets transfer wealth from one group of investors to another. If there were no bull markets, there would be no bear markets. Stocks would at all times offer a return in the neighborhood of the stock return justified by the annual productivity growth of the overall economy — something in the neighborhood of 6.5 percent real. But bull markets transfer huge sums of wealth from one generation of investors to another. To the great detriment of the overall economy.