mjkst27 Posted July 11, 2003 Report Share Posted July 11, 2003 I saw the stat on Prudent Bear's message board, no source was quoted. I found this link on a Google Search: Machinehead has educated us on Fair Value calculations before but I believe the link (a short word document) does a nice little job of explaining when the arb opportunities kick in. It seems to me that in the low-interest-rate, (relatively) high-dividend-yield and (relatively) low-stock-price environment we are in, it is easy for the futures to run back and forth around the fair value number in wide enough swings to provide easy arb opps as compared to higher interest rate days of old. Any comments? I could be way off here. Just trying to understand why the robots are taking over. More proof that the markets have nothing to do with investing, and have no correlation to the businesses of the underlying companies. It's just an orgy of liquidity. Link to comment Share on other sites More sharing options...
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