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To: 2sigma who wrote (2818)1/12/1999 10:34:00 AM
From: Boca_PETE  Respond to of 15132
 
Scott R: Would a linear regression line on the sp-500, dj-30, and the COMPQX since 1991 or 92 take into consideration the decline in interest rates and inflation seen since then ? If not, how would such a line be relevant to determining the reasonableness of today's valuations placed on the indexes you mention ?

P



To: 2sigma who wrote (2818)1/12/1999 11:00:00 AM
From: Investor2  Respond to of 15132
 
RE: "Would someone place a linear regression line on the sp-500, dj-30, and the COMPQX, time period since 1992 or '91, or '90 ..."

One could fit a linear regression line on the market, but an exponential might be a better fit.

Best wishes,

I2



To: 2sigma who wrote (2818)1/12/1999 2:16:00 PM
From: Hank Stamper  Read Replies (1) | Respond to of 15132
 
Scott,

Please explain your question. First, you suggest regressing the indexes against what? And, what does the relationship demonstrate? That most individual stock prices correlate to the market indexes? Also, what is the point of "which one of you is willing to go long....2/3's of a stock's movement is related to the overall market movement"?

Seriously, I don't get your points and I am not asking these questions to set you up.

Ciao,
David Todtman