|
PureBytes Links
Trading Reference Links
|
I ran this off this morning. I wanted to see how we stand on earnings for
the S&P 500 versus the yield on the 30 year bond. I simply subtracted the
earnings yield from the 30 yr bond yield and plotted it against the close
for the S&P. While this is obviously no great surprise, I thought it
worth while to mention. My opinion, in light of the recent rate increase,
is that while earnings have been the star performer they will not be able
to sustain this level of growth. Of course the Fed could lower interest
rates and then we will be off to the wild blue yonder.
On another note. I have attended some meetings on the upcoming
demobilization project. (all securities will be quoted in decimals). I
would not recommend upgrading any trading equipment until this is all
figured out. Wall street is quite concerned over the ability to carry
this off. Mostly everybody is trying to make the CBOE and the rest of the
options industry the scapegoat. Whenever there is a problem it is pretty
safe to blame it on the derivative guys. Well you have to point a finger
at someone! The next few years will bring some staggering changes to the
wild world of investing.
Ron McEwan
Attachment Converted: "c:\eudora\attach\yld2.gif"
|