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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (44)3/9/1998 6:54:00 PM
From: porcupine --''''>  Read Replies (1) of 1722
 
> How does a 5% increase in the Dow's earnings translate automatically > to a 10% increase in the DOW?

What I intended to say was that a 5 "percent-of-a-percent" drop in
interest rates [to date] and a 5% increase in earnings
[by the end of 1998] mathematically implies that a 10% increase in
the Dow would be in the same position as beforehand, relative to
bonds. I added that the Dow has already realized 8/10 of that
price gain [though not yet the 5% increase in earnings over 1997].

Reynolds Russell
web.idirect.com
"There are no sure and easy paths to riches in Wall Street
or anywhere else." (Benjamin Graham)
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