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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: Mohan Marette who wrote (69581)10/6/1998 4:00:00 PM
From: Lee  Read Replies (2) of 176387
 
Mohan,..Re: Long rates

John Bollinger was just on CNBC and had a fascinating chart going back to 1960 showing yield. It showed an equilibrium level of 3.1%. Today's rate is 4.74 and if we subtract 1.6% inflation, it comes to 3.1%. His point was that we may have gotten to the current rate via flight to quality buying but it is where we should be given the CPI and growth! It was very interesting but it did not take into effect the dollar or I think it would be true with the dollar index trading at par.
His final point being that people can't rely on CDs and Money Market and T Bond yields going forward but will have to roll up their sleeves and research some quality stocks to buy. We already knew that though! <VBG> If Bollinger is correct, the Fed is lagging badly! G

Regards,

Lee
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