WACHOVIA HAD A GOOD RUN!

WACHOVIA HAD A GOOD RUN! (click on chart to enlarge)

Note the green line at the bottom. This is the chart of WB relative to the 30 year treasury bond. It is very significant that WB is at a high price relative to the bond yield. I am a bond bear but partly simply because I believe there are still capital gains to be made in stocks and not in long bonds. The net return on long bonds in '05 may be close to zero as values may fall about 5%. Never-the-less, the inverse relationship should tend to hold and WB will go down a little as bond yields go up a little.