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Strategies & Market Trends : Why the markets will continue higher... -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (733)	9/10/1998 4:20:00 AM
From: Brad Bolen	Read Replies (2) \| Respond to of 745

RE: But 5.25% in the long bond sounds pathetic and I think that blue chips can out perform 5.25% annually even with a further decline. This seems to be the most common argument for the Bull. However, this still assumes that we are in at least a mild inflationary environment. But, nothing of this 'correction' has been caused by fear of inflation. Thus, if the fears are warranted, and deflationary pressures are the reality, then the low yield argument is no more valid here than in Japan. I might also add that things don't have to get anywhere near as bad as in Japan to cause a major (additional) selloff. What we KNOW is that corporate earnings are declining. So what is the risk/reward here? B.