How will the conviction of Ken Lay affect the stock market?

[kentuck]

You just know there are a lot of those corporate white collars scheming to make millions off the stock holders, with their rosy scenarios and personal stock holdings, etc. Will this conviction give them pause? Will we see a new round of stock sales and another drop in the market? Or has the recent drop in the market in anticipation of this conviction? Does anyone care?

[coalition_unwilling]

1. Remember that market declined seriously from mid-2001 through

late-2003. I think much of that decline came from investor disillusionment with cooked books and accounting scandals. I believe the speculative bubble that grew up in the late 90s was significantly enough burst that there should not be much current or future market volatility as a result of these two convictions. (Standard wisdom is that the stock market normally prices in the future to about 6-12 months out.)

I know I was chastened by the market decline I referenced above. As a result, I educated myself on how to diversify properly so that all my nest egg wasn't in a single vehicle, like highly-risky growth stocks. I would hope that the mass of American investors are like I and took their lumps and learned from them.

[AndyTiedye]

2. The Market Shrugged

They don't really expect Lay to spend any time in jail, after all.
Bush** will pardon him, of course.

[napi21]

3. I think it will have a positive effect on the markets.

Don't forget, a lot of the people in that same market were damaged severly by the Enron disaster!

I think it will also give current execs great hesitation if they even let themselves think about cooking their info. That HAS to have a positive effect on the market.

[JuniorPlankton]

4. Nobody cares

1. The people who are relatively honest have nothing (relatively :)) to fear
2. The people who are not honest always assume that for them "it's different"

My prediction - no change at all (aside from the fact that "the markets will fluctuate" :9 )

:kick:

[life_long_dem]

5. Buy stock in the companies that produce

petrolium jelly. If I were Skilling or Lay, I would be purchasing as much petrolium jelly as possible.