Investors Can't Get Enough Of Those Stocks

A Dow Jones industrial average finally breaking through the 3000 mark, a Standard & Poor's 500-stock index posting new highs almost daily, and a once-laggard over-the-counter market outshining them all. Whether the 1991 bull market can keep climbing depends on the pace of economic recovery and an upswing in corporate earnings. But there's another element to consider: the flood of fresh equity offerings that has raised almost $10.3 billion from investors so far this year. Furthermore, as much as $70 billion a year in new equity could hit the market in the early 1990s. Can the market absorb that kind of new supply without cracking?

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