Tuesday, May 23, 2006

Now Economic Times says the same thing!

What we said about 50 days back about bond yields and equity earnings-yields is now being said by Economic Times. You will recall that we had predicted the fact that the equity markets are overpriced using reasoning that the bond yields were higher than equity-earnings yields and definitely way higher than the dividend yields. You can see our article talking about this dated April 02, 2006 at:

Sensex or NonSensex? Part II: Is the Indian Stockmarket Overvalued

While the same argument is now being advocated by the Economic Times dated May 23, 2006.

Don't give up. Invest in bonds to beat stock blues

This is another indicator that predictions based on solid fundamental analysis will come true. Of course, at the time of prediction, just about a month or so back, many market experts had been upset about our predictions no one was ready to believe.

But what remains true and will always remain true is that fundamental logic will drive what is going to happen and not whether anyone agrees with it or no one agrees with it.


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