BIG BULL!

30 YEAR BOND JUNE 2005 (click picture to enlarge)

Readers have been asking how I can be so fired up about the market. As usual, the best answer is the simple one. The average stock currently throws off an earnings yield of 6.25% whereas the long-bond offers 4.2%!

A chart of the long-bond interest rate is printed above. This chart shows the unusually low 30 years rates. Make a comparison to the stocks in the six to twelve months after rates were very low in 1998 and very low in June of 2003 and you can see the kind of explosive market we could have in the coming months.

SMART INVESTORS KEEP IT SUPER SIMPLE! THEY INVEST WHERE THEY ARE PAID THE MOST! STOCKS ARE CURRENTLY PAYING MORE THAN BONDS OR REAL ESTATE!

BUY THE BULL!