SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 113.22+1.9%Jan 21 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mohan Marette who wrote (134504)6/25/1999 8:42:00 AM
From: JH  Read Replies (1) of 176387
 
<Goldman's Cohen Says Bull Market in U.S. Stocks Intact, Earnings Strong... Cohen's year-end forecast for the Standard & Poor's 500 Index is 1325, and a year from now she expects the benchmark index to reach 1385. The index yesterday closed at 1316>

Huh? What bull market? The move from 1316 to 1385 is only 5.2% !! The SPX's annualized 100 day volatility is 51.2%, and the annualized 180 day volatility is 47.7%... I don't think that a 10.7% reward ((1.052% ^2) minus 1.00) is adequate to justify a risk which is nearly five times higher !

I believe that investors should demand a equity risk premium of at least 15% to be invested in this market. Combined with the risk free rate of 6%, the required rate of return should be around 21%.

What Abby is REALLY saying is that those who will be satisfied with a 10.7% annualized return for the next six month period should be IN the market. Otherwise, you should be invested in short-term treasurys.

I'd say "no thanks" to the S&P500...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext