tuesday worry, page-5

Anybody read the VanEyk Magazine?

There is an article in it on page 31 that makes some interesting points. Its called "Catalyst for change: economic indicators in volatile markets"

The most interesting point is that the Australian market is trading at a PE of 15.5 which is very bullish and at levels not seen since 2002. It is also almost in line with Bond yields which is a much less risky asset. Considering that - would it not be smarter to invest in bonds since at less risk you generate the same return?

And could this not be an excuse for arbitragers and large financial institutions to move there money away from higher risk assets to lower risk assets when they notice this fact.