Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Ploni who wrote (5337)	3/22/1998 4:02:00 PM
From: Don Westermeyer	Read Replies (1) \| Respond to of 18691

Charles, IMO the thing that will pop the bubble will be a modest in interest rates, may be even rising only to 6.5% or so. I was reading an article recently that graphed the bond yield against the (S&P?) earnings yield concluding that they don't diverge for very long. Currently the stock market yield is already significantly lower than the earnings yield implying that either corporate earnings must increase or the bond yield must go down. I think it is pretty clear that corporate earnings are not going to be all that great this year, so all that is left supporting the market is low interest rates. Who really knows what direction interest rates will go.