the inverse on the us 10 yr bond yld would suggest a pe of around a touch under 20. if rates go up do you think company profits will outstrip the ratio which would imply at 5.25% a pe of 19. at 5.5% 18 and at 6% ........... 16 ! a mkt fall is more probable.
what we saw today is big companies taking cheap money to buy cheap dollars. then spending it on us companies.
NOTE that not all us companies are going to get such a compliment as being taken over.
dangerous times for the unwary.
non us dollar based investors should NOW start to rethink their us holdings strategies. a weak dollar takes away any flattering gains on the dow.
be good.
40
DOW Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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