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To: Skeeter Bug who wrote (92026)1/24/2000 3:05:00 PM
From: Tom Kearney  Read Replies (1) | Respond to of 164684
 
Skeeter - Reinvesting the return is wrong because the return is based on the principal you invested. A year later we don't know what the bond would cost but it will still return 6% against the principal. The Dow 36,000 theory is actually
incredibly conservative. Look at the calculation of zero coupon bonds to understand the math. Read the book to get the theory.

Regards,
Tom


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