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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?


To: Alfred W. Post who wrote (114)11/11/1997 9:50:00 AM
From: Investor2  Read Replies (1) | Respond to of 226
 
RE: "I like you to comment on my home made theory on interest rates: I have come to believe that the actual cost of money is about 3%."

I believe your theory is correct. Use the best available inflation data, which is currently the CPI, although the CPI probably overstates inflation a little.

Best wishes,

I2



To: Alfred W. Post who wrote (114)11/11/1997 10:53:00 AM
From: studdog  Read Replies (1) | Respond to of 226
 
I love simple formulas, your's sounds as good as any and I would have
to agree with the conclusion it gives you.

Karl



To: Alfred W. Post who wrote (114)11/11/1997 12:48:00 PM
From: Elllk  Read Replies (1) | Respond to of 226
 
Alfred

Why is the actual cost of money 3%?

Larry