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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Rational who wrote (8027)	11/15/1997 4:34:00 PM
From: Haim R. Branisteanu	Respond to of 18056

Sankar, thanks for your valuable comments. As to the cost of capital today it is mostly the LIBOR rate + 20 to +30 bp, (or bettter the cost of a yen swap) not the 10 year treasury. The 10 year treasury is a proxi for compensating for future growth or inflation. On the other hand the whole "profit growth" scenario is kind of a hogwash invented by WS which is trying hard to convince the real world of it's questionable merits. The fact is that no one can realy predict 3 to 5 years in advance, yes one may asume, but I also asumed that by now I will be extreemly rich <:8). The present turmoil in various economies in the world is only re-enforcing my belief that predicting profits beyond 1 year is a very risky business. Happy trading Haim