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To: Tom D who wrote (43352)11/11/2000 1:44:45 PM
From: Monty Lenard  Read Replies (1) | Respond to of 77397
 
Tom, before you put a lot of faith is John I strongly suggest you check his profile and his past performance. This guy is just selling books. Now you can call this an attack or whatever you want but it is the truth. Look at his posts.

Monty



To: Tom D who wrote (43352)11/11/2000 8:28:23 PM
From: Stock Farmer  Respond to of 77397
 
Great PS!!! ROFLMAO!!! eom.



To: Tom D who wrote (43352)11/12/2000 3:50:07 PM
From: John Malloy  Read Replies (1) | Respond to of 77397
 
<What is the formula for the relationship?>

The NASDAQ correlation is based on quarterly data from 1985 through the second quarter of 2000. The formula is:

ln(NASDAQ) = 6.7355 + 4.2896 ln(Nominal GDP)

R squared for this correlation is 0.9835, the standard deviation is 0.0677. Statisticians normally require that the t test for each coefficient be greater than 2 before you can claim that that coefficient is really different than zero. The t value for the GDP coefficient is 13.5. The correlation says that the NASDAQ has been growing 4.3 times faster than nominal GDP.

I normally include the natural log of the interest rate on long-term governments in these correlations. In the case of the NASDAQ correlation the t test for the interest rate coefficient was only 0.08. That means the interest rate did not have a statistically significant effect on the NASDAQ over the time interval I tested.

John Malloy