A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Clive

>>>>
A reasonable model to work with is that stock capital values pace inflation over time. Cash also paces inflation.

Stocks however pay a dividend yield which might be considered as the risk premium element.<<<<

Cash is owned not so much as an investment but as a stable store of value. If we bought everything in ounces of oil that oil would be the thing I would say to buy as the reference holding. But dollars it is. The dollar holdings allow you to buy and sell stocks at higher or lower prices.

Toofuzzy