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Pastimes : The Naked Truth - Big Kahuna a Myth
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To: IceShark who wrote (12029)11/30/1998 5:34:00 PM
From: accountclosed  Read Replies (1) of 86076
 
Tell me what I am missing that you all think is circular. Stocks and bonds usually have a virtuous cycle. That is they are self reinforcing. When bonds go up stocks become more attractive and go up in kind. The current bond market situation is peculiar at best. I believe signaling tremendous instability.

But stocks at 25 times are more attractive to issue than bonds at 6%.

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