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Pastimes : Ask Mohan about the Market

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To: Cynic 2005 who wrote (7804)	11/14/1997 12:16:00 AM
From: Sunny Jim	Read Replies (3) of 18056

<The moment long bond yield closes below 6% "in a hurry", the stock take a tumble!> When the long bond was pushing 7% a while back, everyone said that as soon as the long bond went over 7%, the stock market was in for a real correction. Now the long bond is approaching 6% and you predict that as soon as it drops below 6%, the market will tumble. I understand why high rates put pressure on stocks, but can you explain why low rates will put pressure on stocks?

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