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.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Box-By-The-Riviera™ who wrote (94132)4/14/2001 8:17:48 PM
From: pvz  Read Replies (1) of 436258
 
Can somebody explain to me how inflation and interest rates fit in with Richard Russell's view that dividend yields are currently too low compared with the other periods he mentions in his interview? It seems to me that comparing nominal rates is too simplistic. If I recall correctly, 1982 was a period of high interest rates and inflation, which is not what is going on today.

Also, something that has been niggling me ever since reading the article earlier today, is the 'widows and orphans' controversy I last heard much about when studying accounting back in the eighties. Could it be that a paradigm shift has been taking place whereby companies no longer wish to burden investors with tax inefficient dividends, especially when they can put those funds to better use in the growth of their businesses? I for one, would prefer to invest in bonds or money market funds if I were looking for a steady income stream taxable at the highest rates. Isn't that why news of major stock buy-backs at market bottoms is more likely to to please shareholders?

<<But things also could get much worse. At other major bear-market bottoms, the Industrials have tended to sell at 10 times earnings and yield 6%. We saw a 10% yield in 1932, but that was a historic extreme. In 1949, in 1974 and again in 1982, the yield at the bottom was about 6%. Assuming current dividends on the DJIA components hold up, which they probably won't, the index could fall to between 3000 and 4000.>>
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News