If risk free rate is 0.01, a PE of 10 is way too high

Discussion in 'Trading' started by bond tr4der, Dec 1, 2008.

  1. The longer treasury yields stay low, the higher the liklyhood we're going to crash, hard.

    What's limit down these days anyway? -1250?
  2. MGJ


    Buy some LEAP puts and when you close out the trade, please tell us how it worked out.
  3. You must use 10 or 30 year bonds.
    The reason is simple, if you want to invest for 4 weeks or a year, then stocks are not for you.
    Stocks are long term investments.
    Otherwise you are comparing apples to oranges.

    10 year bond yield 2.82%, P/E 35