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OK, so we abandon bonds for higher-yield stocks


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#1 spielchekr

spielchekr

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Posted 02 June 2007 - 08:15 PM

Won't bond yields go up? And if it's all about yield (from bonds or stocks), who will buy the Naz?

As far as the IBES valuation model goes, it's worked since 1979, but TNX peaked shortly thereafter. That model has never been long-term tested in a rising bond yield environment (nor have many many other newfangled indicators). It just might be a whole new ballgame from here.

A couple of charts...

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