9/21/07

Stock prices, bond yields, and financial crises

Yes, I was right!

I gave you three main ideas in this blog (see below for detail).

1. Financial crises are a great buy opportunity. And it happened in August-September.

2. A rise in bond yields is followed by a peak in the market. And it happened in May-June.

3. A decline in bond yields is followed by a rise in the stock market. And it happened in August-September.

Now enjoy the trends. Until when?

The charts I showed and the relationships I discussed in the past in this blog between bond yields and stock prices suggest that the stock market will have a pronounced correction following a protracted rise in bond yields.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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