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Strategies & Market Trends : Three Amigos Stock Thread

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To: LTK007 who wrote (8421)9/7/1998 12:24:00 AM
From: j g cordes   of 29382
 
Max, there's a little hoooy in that Barrons article. For example:

"..Normally, when bond yields fall, stock prices rise. It's easy to see why. Lower interest rates raise price/earnings multiples while also reducing financing costs for companies, and therefore boost corporate earnings. However, since late March, the yield on the 30-year Treasury has fallen by 10.4%, but, instead of rising, the Standard & Poor's 500 Index has fallen 9.59%."

Actually this is a glaring error which I can only assume is intentional for pushing a negative commentary. Look at these two charts, one the S&P500 and the other the 30 Yr Treasury. Its obvious they tracked each other quite well into July when Asian worries began to flatten stock market confidence and funds began shifting into Treasuries as a safe haven: quote.yahoo.com

Jim
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