and Dancing With Lions

Discussion in 'Educational Resources' started by reality_where?, Aug 26, 2006.

  1. I know Trader X closed down but what happened to all the people who were developing with the principles and using Eating The Loser?

    Are they on a thread somewhere? a yahoo group?

    Anyone want to discuss developing along these lines?
  2. Please save me from this drivel

    Stock Market Safety Index
    We use the Stock Market Safety Index (MSI) as an indicator of the market's condition. Its main purpose is to tell us whether the market is overvalued or undervalued. We compute the MSI by taking the difference between an extrapolated SP500 earnings yield and the current 90-day TBILL discount interest rate. The extrapolation is 13 weeks and computed with a constrained quadratic least-squares fit of the preceding 52 weeks of earnings. A MSI value greater than zero means that the equities yield is higher than the TBILL yield and the market is undervalued. A MSI value less than zero implies that the equities yield is lower than the TBILL yield and the market is overvalued. In terms of return and risk, a large positive value would favor stocks as an investment. A large negative value would favor less risky investments, such as TBILLs. If you look at plot of the MSI over the past it is easy to pick out the 1987 crash, the 1990 mini-crash, and the 2001 decline

    We then flip a coin and decide if we we should go to the beach