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

To: N who wrote (1315)	2/25/1999 1:59:00 PM
From: N	Read Replies (1) \| Respond to of 3536

Add: Does this mean expected stock returns are so high, that we'll never have the fall in bond prices required to generate an equivalent yield? Or if folks bailed from stocks into bonds, yields would fall...

To: N who wrote (1315)	2/25/1999 2:04:00 PM
From: Ahda	Read Replies (1) \| Respond to of 3536

Nancy i am going to take a stab at this. You have a market that has extreme evaluations on future earnings. You have much risk in this market and if bonds go up why would one wish to maintain a high risk portfolio versus convert to bonds that are safe. Did this help you?

To: N who wrote (1315)	2/28/1999 1:01:00 AM
From: Peter Singleton	Read Replies (2) \| Respond to of 3536

Nancy, <<"We've got a market that's priced at a level that we can't afford to back up in bond yields, and that's what's happening," said Bill Meehan, chief market analyst at Cantor Fitzgerald.>> I think what Bill is saying is that if the recent interest rate rise is evidence of a secular change to higher interest rates, you can turn out the lights on the stock market bubble ... this thing is coming down, and down hard. What he doesn't say, but could, is if this is happening at a time of monetary easing, then the Fed may have used up its silver bullets. Peter