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International Business Machines Corporation Message Board

  • steelingmoney steelingmoney Aug 13, 2013 12:01 PM Flag

    If 10 yr treasury yield hits 3 percent then maket goes down

    This is what is driving the market sideways to down at this point. Try to give IBM a div yield of 2.7 percent and the price would need to move down to the 140 range if only looking at yield and no capital appreciation investing here.

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    • do you realize that IBM's stock price has nothing to do with the treasury yield or IBM's dividend, however paltry? If IBM moves down to 140 it will not be because of their dividend and its relationship to a treasury bond's interest rate.

      Sentiment: Strong Buy

    • "This is what is driving the market sideways to down at this point. Try to give IBM a div yield of 2.7 percent and the price would need to move down to the 140 range if only looking at yield and no capital appreciation investing here."

      You just pulled this unsubstantiated relationship of IBM's share price at $140 to a 3% 10yr Treasury out of thin air.

      Treasury bonds don't increase their payouts 10% - 12% a year.

      If the stock market starts to take big hits money will flock to the 10yr Treasury and force the yield down.

      The FED has spent the last 4 years trying to improve equities. Bernake has said that the FED will regulate QE to avoid rate spikes and harm to the US equity market -- it's been the main point of focus of FED policy.

      So why try and sound the phony alarm bells. The FED isn't stupid and if you think it is that reflects on you.

    • Great post, I don't know about 140 but the 3 percent on the 10 year is spot on. One of the more intelligent posts in a while.

      Sentiment: Sell

 
IBM
194.40-0.84(-0.43%)Jul 25 4:00 PMEDT

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