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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (68997)	10/21/2011 2:34:57 AM
From: John Pitera	Read Replies (1) \| Respond to of 207210

Hi Richard, that's an excellent example as to how we had an era of expanding returns after Paul Volker and the Powers that be broke the back of inflation by driving the Fed Funds rate above 19% at the start of 1980 and the end of 1980. As interest rates come down the P/E Ratio naturally expands since the yield on debt securities decreases. You back in 1970 to 1980, I believe the market capitalization of the Debt Market was about 10 times that of the stock market. Equity capitalization has come along way towards being a larger marketshare of the Asset class markets. John