Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: limtex who wrote (81790)	6/19/2002 8:02:12 PM
From: t2	Read Replies (1) of 99280

limtex, Stocks are going to be compared to the risk free returns from government bonds. So how did bonds do today? They rallied in a big way today and for several months, taking the yields lower and lower. Buying up the DOW (DIA)is the best value in this market. The PEs of the biggest companies look like a great deal compared to the QQQs. They are a safer bet as any dips in their stocks would lead to more stock buybacks. Once the money finally starts coming out of the bonds, this is where it is going first, imho. Dow stocks are surely better than for example a 4% yielding 5 year bond that faces more currency risk than stocks. In addition, weaker dollar probably helps the average DOW stock the most. I guess the market is not ready to be rational yet...as we have experienced one incredible bubble. That is the biggest problem for the bull case. Another good bearish argument against the Nasdaq in particular. That is why I try to avoid holding overnight on tech stocks. They seem only good for daytrading.

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