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


To: Real Man who wrote (52541)6/30/2001 3:16:08 PM
From: William H Huebl  Respond to of 94695
 
Vi, thanks, been there, seen that.

Since SCYR includes both the dividend AND the earnings (some sort of double-counting going on THERE), my guess is that the author had in mind some sort of speculative value beyond the dividend vs interest rates. I back-tested that puppy to 1940 and seemed to work ok... when it was above 1.21 (I use 1.5 now) it was a good time to buy, and when it was below 1.21, it was a good time to sell (I think probably 0.9 under "normal" conditions is probably the lower limit.) The low for it was around .65 in this bubble which is incredible! But then it went over 2 in the past 60 years. Lord knows what it was back in 1929 and 1930s.

I use the sum of the SP500 dividends and earnings divided by the 13 week coupon treasuries. 1.44 right now. I think we will reach 1.5 this week. FINALLY! Yes. I will buy. And will let everyone know that is what I am doing via a web-site update. (Never DID know how to spell web-site???)

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