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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Lucretius who wrote (26638)10/10/2000 10:21:02 PM
From: patron_anejo_por_favor  Read Replies (1) of 436258
 
Well, in any case it's extremely overvalued. A sub-1000 print on the SPX won't shock me a bit...

BTW, nice International Perspective column on PruBear tonight on the telco debt implosion, including these comments from PIMCO's Bill Gross:

prudentbear.com

Debt
holders have a bigger problem which was eloquently expressed recently in
a report by PIMCO bond fund manager Bill Gross:



“Destruction is no big deal for stock managers if there are a few CISCOs at
2,000% appreciation to balance out the forgotten “no names” which returned
them nothing. But in the bond market there are no CISCOs, no Microsofts,
and no future standouts that will ever pay them more than par at maturity.
Because of this mathematical limitation and the certainty of 10 or 20 cents on
the dollar at best for the losers, corporate bond investing in a New Age
Economy is a dangerous proposition. It flies smack into the headwind of
Schumpeter’s “destruction,” while a diversified portfolio of equities seemingly
moves in the other direction, soaring and then jet streaming along at the
benefit of Schumpeter’s “creative” tailwind.”

EDIT: The 10yr AA Corporate bond spread tied its 52 wk high today at 173 BP's....
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