Charlie,

>I'll be very surprised if "investor confidence" ever returns!

Ahhhh, don't say that, be positive! It's these crazy preceptions that screw up the market. Actually, US economy is in good shape. Low interest rates, low inflation and low unemlpoyment. Investors are just freaked out. Need some new regs to regain their confidence.

>I'm much reminded of the late 70's or early 80's where GOLD ruled the day. I remember seeing my boss in long bank line-up to buy more gold. He knew NOTHING about its market, yet he, like millions of others, jumped right in with both feet. Virtually all lost their shirts very badly. I know that he said he would never go near gold again!

At times, gold is a good investment. The key is to not make the mistake of owning too much. People get greedy. Gambling is a disease like drug addiction!

>I've heard/read that over 50% of Americans are "into" the stock market, and that less than 20 years ago the number was more like 8%.

This is because of tax deferred investing in pension plans has brought new investment into market.

>Once the pool of investors is back to the folks who understand the system, "investor confidence" may return. But there will be a whole lot fewer investors.

Let's hope not!

Jim