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couldn't resistance this temptation to say something :)
It is proven that individual company's P/E ratios, capitalization, etc.
are not too useful for forecasting the future stock price of a company,
otherwise, the big brokerages would be in business buy and hold themselves
as oppose to charging outrageous commission and selling non-standardized
derivatives ...
for interest rate and inflation - that affect policy change and in turn
affect long term supply and demand on all securities ...
so, the borderline of true cause and effect is quite unclear ...
especially when time price series now are known to be chaotic systems
already => principle of causation no longer works!
-Lawrence Chan
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> From: GREHERT@xxxxxxx
>
> RE: Astrology. I think the issue here is rational cause and effect.
We
> discuss interest rates, inflation, P/E ratios, sentiment, capitalization,
> etc. because these things have an effect on the markets. What in God's
name
> could the location of Uranus have on S&P futures?
>
> Best wishes,
> Jerry Rehert
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