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Technology Stocks : Intel Corporation (INTC)
INTC 40.18-0.8%1:26 PM EST

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To: chomolungma who wrote (174149)4/17/2003 10:17:33 AM
From: GVTucker  Read Replies (1) of 186894
 
chomolungma, RE: Given the current level of interest rates and the non-recessionary earnings power of the S & P 500, my analysis places this average around 20% undervalued and very likely more.

One of the great market myths that is slowly being exposed as false right now is the myth that the current interest rate level is somehow related to the future returns of the market.

That is false. There is no correlation between the interest rate level and future returns. There is a correlation between the future change in interest rates and the future returns of the market, but that is a very different point, and while more credible, it is still debatable.
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