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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: wooden ships who wrote (5943)	7/14/1998 9:07:00 PM
From: Investor2	Read Replies (1) \| Respond to of 42834

Re: "the lowest US 30 year bond rate in history," While that may be true specifically for the 30-year Treasury bond, I believe that bond rates in general were lower many years ago. At that long-ago time, people believed that stocks should pay higher dividends than bond interest. The popular reasoning was that stock dividends may or may not be paid, depending on the profitability of the company at any given time. Conversely, bond interest payments were paid prior to payment of dividends. There was a much greater certainty of receiving the stated bond coupon. Because of the uncertainty of stock dividend payments, stocks were valued to pay a higher dividend yield than bond interest. The conditions long ago were quite a bit different than now, as bonds currently yield about three times as much as stocks. Best wishes, I2 P.S. As a follow up, I found this link that may be of interest. cpcug.org

To: wooden ships who wrote (5943)	7/14/1998 9:23:00 PM
From: MrGreenJeans	Read Replies (2) \| Respond to of 42834

Hedging I am still long equities, 65%, and I along with many others on this thread have faith that Bob will do his best to call the next bear. Bob brought me to this dance, made me wealthier than I ever thought I would be at my age, and I await his bear call to fully exit this market whenever that may be. However, in every forecast including Bob's there is a probability for error. The only thing Bob does is his best to forecast the market and he gives his honest opinion every week / month and that is all I can ask. To hedge any error in Bob's forecasting model, let's face it the market will do what the market will do regardless of what anyone thinks, I have chosen to start disengaging a bit early. At these high pe levels any disappointment in economic fundamentals may cause a stampede out a very narrow door. As for me, I would rather walk slowly out the door, taking my time, and taking my wheelbarrel full of profits with me, and not have any footprints embedded on my chest. At the end of this bull run I want hefty realized profits to show for it and that is what everyone of us should strive for.