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To: Howard Bennett who wrote (1476)1/7/1998 7:15:00 PM
From: Bald Man from Mars  Read Replies (2) | Respond to of 2389
 
Not to mention the year 2000 problem !!!
I think the tech stocks are in big trouble ...



To: Howard Bennett who wrote (1476)1/7/1998 11:04:00 PM
From: Charlie Smith  Read Replies (1) | Respond to of 2389
 
Howard:

Historically in the U.S., the long term (>20 yrs) real interest rate has averaged about 2.5 percent. Today long Treasury bonds yield about 5.75 percent to maturity. Assuming a CPI of 2 percent (it's actually lower) gives you a real rate of 3.75 percent (5.75 - 2 = 3.75). This is 50 percent above the long term average. Rates are going much lower.

Best regards,

Charlie