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Strategies & Market Trends : Value Investing

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To: Tommaso who wrote (12803)7/17/2001 2:31:12 PM
From: Bob Rudd   of 78742
 
<<Incidentally, the St. Louis Fed's monetary publication just ran an overlay of Inflation adjusted bond rates against the NASDAQ index. For some reason, it's an almost perfect predictor of the NASDAQ. The interest rates, after a brief rise, recently turned down again. We'll see it it coincides.>> Here's link to research you referred to: stls.frb.org While the chart does show solid correlation, I've found these relationships fall apart the day after I try to trade on them. Nevetheless the rationale, that high expected returns in competing stock market [which could also be described as higher risk preference], pull money away from safer securities, is plausible.
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