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Politics : Ask Michael Burke

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To: Mike M2 who wrote (66729)	8/24/1999 5:08:00 PM
From: Nadine Carroll	Read Replies (2) of 132070

Mike, I'm surprised that no one on this thread has responded to the cover article in the new issue of Atlantic , the one where it is explained that the DOW is undervalued, it should really be 36,000. The explanation has something to do with the dividend yield of stocks plus the expected dividend yield growth being greater than Treasury bond yields. And oh yes, stocks are safer than bonds over the long term so they should carry no risk premium at all, just the other way around in fact. Can't wait for a review from you or MB. Think I'll return to reading Devil Take the Hindmost . I've reached the part where they are explaining about the "new paradigm" of 1928. Something sounds very familiar. Everything, in fact...

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