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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (81933)	9/23/2001 9:48:48 PM
From: BigMoney	Read Replies (3) \| Respond to of 99985

again, wrong wrong all wrong. santoli is an idiot. does he understand the concept of "risk premium"? <When the earnings yield on stocks exceeds the Treasury rate by such a substantial margin, stocks are said to be undervalued.> no, what this means is that the market is assigning a higher risk premium to stocks, which they freakin should given the current risk of recession which will put a lot of companies out of business, and the risk of war which will destabilize economies further. <This means that investors are assigning less value to corporate profits, which should grow over time, than to the steady yield on government bonds.> no, this means investors are assigning less faith in forward corporate profits and the belief that they will grow over time. did barrons include any opposing articles in that issue?