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 : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Sterner who wrote (8279)	2/11/1999 8:01:00 AM
From: LastShadow	Read Replies (2) \| Respond to of 43080

Just a thought... Greenspan speaks this afternoon about interest rates, and depending on what's said and how the market responds, we could see a rise or a selloff. I personally don't see him saying anything encouraging given his recent statements on market overvaluation and low yield. I recommend being out of risky long postions by about 2:00 EST. If the market goes up, one can always reenter. But if you are long, and the markets starts selling, it could get bloody. The yield for the DJIA, DJTA and the S&P 500 has historically moved between a range of 3% (overvalued) and 6% (undervalued). The normal yield range for the DJUA is between 3% and 12%. Values can fall outside that range, and, when they do, indicate even greater extremes of market valuation. S&P 500 DJIA DJTA *DJUA Current Closing Price.............:1224 9177 3119 294 Current Yield.....................: 1.3% 1.7% 0.9% 3.8% Current P/E.......................: 33 24 17 21 Current Payout Ratio..............: 0.4 0.4 0.2 0.8 Price at 1.5% Yield..............: 1061 10401 1871 Price at 3.0% Yield (RVR 100)....: 530 5200 936 372 Price at 4.0% Yield..............: 398 3900 702 279 Price at 5.0% Yield..............: 318 3120 561 223 Price at 6.0% Yield (RVR 0).....: 265 2600 468 186 Price at 8.0% Yield..............: 199 1950 351 140 lastshadow