Go to the Amazon.com link below for TIMING THE MARKET by Deborah Weir (Wiley, 2005).
Email: DebWeir@WealthStrategies.bz
Take her class at the NY Institute of Finance: nyif.com/courses/fimk_1014.html.
Tuesday, June 06, 2006
Twenty-nine of the DOW 30 declined yesterday as the Put/Call ratio exceeded 1.0. Yield curves including that of commercial paper are normal. Investors may start to pick up some bargains.
2 comments:
Anonymous
said...
On page 84 of your text, you stated 4 rules to sell stocks, of which 3 of the rules are combined together (you use the word "And"). However, two of your sell rules are based solely on bond quality spreads expanding. Please clarify. Also, how did you come up with the "sell" dates of Oct. 15 1987 and Sept. 4, 1998? How much of an expanding spread would you be looking for (rate-of-change)? Thank you.
Increasing quality spreads are an important indicator of "flight to quality" in the bond market that usually spreads to stocks. A ten percent rate of change is a good benchmark. THis is how the 9/4/98 date was identified. Oct. 15, 1987 is when the curve was inverted from 10-30 years and the ten-year yield was 10%.
2 comments:
On page 84 of your text, you stated 4 rules to sell stocks, of which 3 of the rules are combined together (you use the word "And"). However, two of your sell rules are based solely on bond quality spreads expanding. Please clarify. Also, how did you come up with the "sell" dates of Oct. 15 1987 and Sept. 4, 1998? How much of an expanding spread would you be looking for (rate-of-change)? Thank you.
Increasing quality spreads are an important indicator of "flight to quality" in the bond market that usually spreads to stocks. A ten percent rate of change is a good benchmark. THis is how the 9/4/98 date was identified. Oct. 15, 1987 is when the curve was inverted from 10-30 years and the ten-year yield was 10%.
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