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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (8505)9/28/2002 11:32:12 AM
From: t2  Read Replies (3) | Respond to of 30712
 
why would that launch the markets?

Asset allocation changes. If 2 year bond is at 1.80% and 5, 10 are also hitting low yields, reasonable to assume that money will shift from bonds and into stocks. The companies that pay dividends get bought...and that creates a change reaction which includes "growth" stocks.

Not saying it is going to happen...just that the odds have increased. Also note that in July, the 2 year note yield was higher than it is now.

On the other hand, the Iraq uncertainty may be working to stop any sort of rally in stocks.