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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (38295)3/12/1999 2:03:00 AM
From: Brad Bolen  Read Replies (1) of 94695
 
Thanks Bill,

I used the SCY ratio for years, after reading 'Taming the Bear', to the point that I printed a big flash card everyday with the latest ratio I got after reading Barrons on the weekends (now I know why you are speaking of your Barrons indicators, etc). I would always stick that card over the top of the computer to remind me of what I considered important. Somehow, I got away from even looking at it, let alone pasting a big stinking flashcard to my computer (I think those 4000 points you spoke of represents two computers ago). Maybe I got frustrated.

BTW, for those that don't know, the SCY is a ratio that uses the following formula:

Stock Earnings Yield + Stock Dividend Yield (Total Yield)/
Treasury Bill Yield = Stock/Cash Yield Ratio (SCY)

This is where the Earning Yield is 1 divided by PE
The dividend yield is the combined of the S&P if I remember
and Treasury Yield is the THREE MONTH bill. All these are in the Market Lab section of Barrons, if I remember.

Anyway, I would have never have thought of using the SCY the way you do. I love that idea. And since I know what the SCY is about, it really scares the beegeebees out of me to hear your results. I think I will raise at least some cash tomorrow.

Good Luck

B.

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