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Of course that is the market as a whole there are still individual companies that represent reasonable value but there are a lot of companies where they will need an awfully big tailwind to justify their current prices

I haven't figured out yet whether the Fortune article from WB is directed at the US or whether he is talking globally. Given that all markets interact it seems to me that there will still be some countries that will do a lot better that the 7% return predicted by Buffet - over the long term Australia is one of them !!
I think that a lot depends on a country's growth cycle and its resources - the US is probably at its peak (although I have no facts to back that up) whereas Australia still has a long way to go.
Its interesting that Australia is predicted to have a 3% GDP growth in 2002 and 4% in 2003 which I assume is real growth. This is in contrast to the US which is still mired in recession and probably will be for some time despite Greenspan pumping liquidity into the market like crazy. Any increase in US market prices will be as a result of this pumping and not because of a turnround in company profits and productivity.
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