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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: William H Huebl who wrote (48241)8/17/2000 10:50:48 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 94695
 
Bill, what exactly is the SCY ratio? something to do with bond yields, i know...

do you know the Barnes market risk index? it's based on comparing short and long rates with S&P dividend and earnings yields. historically (pre-bubble, i.e. until '97)it has oscillated between 0 (low risk) and 100 (high risk). it's right now at 325, slightly off the historic high of 360 reached in January. in 1987 it briefly spiked to 160 before the crash...that was the historic high back then.
based on this index, market risk is extraordinarily high...the market could sell off by almost 70% and it would merely return to its historic upper boundary.

gives one pause...