StockTwits
07-13-2010, 12:30 PM
Price/Earnings Ratios In Low Interest Rate Environments - Trader's Narrative (http://abnormalreturns.com/links/165843/visit) (www.tradersnarrative.com)
by TN about 11 hours ago
I presented a study recently showing the historical relationship between the equity earnings and interest rate yields. The current spread was shown to be the widest since 1980. Although back-tested trading of such models (Fed Model derivations) have not proven extremely successful (except at extremes), it is this person’s opinion that this approach has more utility than simply valuing the market at P/E levels, void of any other relevant variables.
read more... (http://abnormalreturns.com/links/index?date=07/13/2010#165843)
by TN about 11 hours ago
I presented a study recently showing the historical relationship between the equity earnings and interest rate yields. The current spread was shown to be the widest since 1980. Although back-tested trading of such models (Fed Model derivations) have not proven extremely successful (except at extremes), it is this person’s opinion that this approach has more utility than simply valuing the market at P/E levels, void of any other relevant variables.
read more... (http://abnormalreturns.com/links/index?date=07/13/2010#165843)