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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (20131)6/12/1998 9:53:00 AM
From: Nancy  Read Replies (2) of 94695
 
what is BWDIK ?

Before 1995, market has occasionally returned to fair value and in some periods became undervalued based on bond yield - the model only compares bond yield (the 10 year + 30 year /2) vs S&P estimated earnings to determine the relative value.

model has issued a sell signal since 1995 that means bond is of better value of stock - and of course, stock went up over 100% in the following 3 years - that is because market has been at overvalued mode ever since, just sometimes less overvalued, i.e. jul 96, apr 97, oct 97, jan 98.
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