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Monthly Archives: January 2009

444 - PIPS LEFT UNTIL PARITY

05-Jan-09

The GBPEUR cross currency pair is getting stronger for already 6 weeks. Since November 12th, it broke a resistance line at 0.82. Before that, it was trading in a narrow range between 0.77 and 0.81.
Since November 12th, it has one direction: up. While the economic crisis weakened the US dollar against the all currencies, the […]

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4.19 - THE FED MODEL

04-Jan-09

The Fed Model is a theory of equity valuation used by some security analysts that hypothesizes a relationship between long-term treasury notes and the expected return on equities.
According to this valuation model, in equilibrium the real yield on the 10-year U.S. Treasury Bonds should be similar to the S&P 500 earnings yield (that is, S&P […]

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