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 : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (9327)	3/28/1999 10:08:00 AM
From: Gersh Avery	Read Replies (2) \| Respond to of 99985

Morning LG. Some additional comments about TYX.X. One large reason that LG and many others watch the TYX.X is for a leading indicator as to which way the stock market will move. At some point the returns from government bonds outweighs the returns that can be received from stocks. The federal reserve has a formula which determines which is a better investment. It takes into account overall PE ratios, interest rates and risk. We are close to the point where the guaranteed returns from bonds is more desirable than the returns from stocks given the overall risk. Additionally, as don mentioned, we are at a time of end of month window dressing. What many are overlooking right now is that it is also end of month and end of fy for Japanese banks. Over the next few days these banks will make any last moment moves needed to balance their books. Japanese banks are some of the worlds largest holders of US bonds and may still need to unload some of these before 4/1/99. My 401k is 100% cash right now. Gersh