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Historical S&P, earnings, and dividend data came from Eagle Data
317-293-2696 and I update it from Barron's MarketLab. Also available with
updates from www.pinnacledata.com.
Earl
-----Original Message-----
From: Bradley C. Mitchell <bradmit@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Sunday, September 27, 1998 12:05 PM
Subject: RE: S&P Earnings Yield
>? Where are you getting your downloaded data from?
>
>-----Original Message-----
>From: owner-realtraders@xxxxxxxxxxxxxx
>[mailto:owner-realtraders@xxxxxxxxxxxxxx] On Behalf Of Earl Adamy
>Sent: Sunday, September 27, 1998 11:32 AM
>To: RealTraders Discussion Group
>Subject: MKT: S&P Earnings Yield
>
> << File: SPYIELDS.gif >> Been a while since I posted this ... thought the
>group might like to see how
>the market is doing on a yield basis. The bottom graph does an
exceptionally
>good job of relating TBill yields and S&P Earnings. Any of three events
>brings the ratio down: 1) a decline in TBill yields, 2) an increase in S&P
>Earnings, 3) a decline in S&P price. Inverse events run the ratio up.
>Calculations are shown in both sub-graphs.
>
>Of note is the fact that the ratio remains at historically high levels in
>spite of recent declines in _both_ TBill yields and S&P price. This
suggests
>that it will take further declines in both items to bring the ratio back to
>historical norms ... assuming that S&P earnings do not decline. Should S&P
>earnings begin declining, even greater declines in S&P price and/or TBill
>rates will be required.
>
>Of course, there is no assurance that the ratio must/will return to normal
>levels anytime soon, however eventually ....
>
>Earl
>
>
>
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