Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I buy it, but the market might not. Particularly since interest rates vary themselves.... Yardeni's fed model (assuming fair values when earnings return (and future ones at that) equal the yield on ten years treasuries) is extremely speculative, it assumes that there is no premium to be paid for corporate failures, the treasuries are absolutely safe, but the returns of corporations is not, there should be a natural premium of 10% to 20% for that risk factor. Some would say, much more, if you look at how many Dow companies are no longer there (not just no longer in the Dow), you'll see what I mean.

Zeev