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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (997)	11/3/1998 6:16:00 AM
From: Zardoz	Read Replies (1) \| Respond to of 3536

I wasn't suggesting dividend yields {seems most ignore those now days, which they shouldn't}, but treasury yields. With the US 30 yr around 4.75-5.25% it'll be hard to get the PE's of the equity market below DOW 7700 {with a lower limit of 7200} When I made my 6300 prediction of last year, I was assuming a strong growth rate, and rising interest rates. But if we believe that the growth is diminishing {I don't} than the trend is higher range. I see a trading range of 7700-9000 for the next three months. I do NOT believe, for a long time now, that the FED will lower on Nov 17. I am a firm believer that they only added liquidity to support the market, and that they really wanted raise rates. Look at the FED Fund rate: bog.frb.fed.us They are trying to back off on the liquidity as fast as possible. Note: this figure does spike on regualar basis. {A 6% is probably this week} PS: aren't dividends yields historically extreme low? {Excpet for the Canadian bank shares I bought a while ago, they where above 4%... I'm still smiling. T:CM}