Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.

Share this Page URL
Help

CHAPTER 4: The RPF Model and Major Marke... > 2000 "Dot-com" Bubble: RPF Model Sug... - Pg. 47

The RPF Model and Major Market Events from 1981 to 2009 24.00 22.00 20.00 P/E Ratio 18.00 16.00 14.00 12.00 10.00 Jan-86 Mar-86 May-86 Jul-86 Sep-86 Nov-86 Jan-87 Mar-87 May-87 Jul-87 Sep-87 Nov-87 Jan-88 Mar-88 May-88 Jul-88 Sep-88 Nov-88 6.00 5.00 Oct-87 Interest rates begin climbing in March '87 47 10.00 9.00 10-Yr Yields 8.00 7.00 Actual Predicted 10-Yr Yield FIGURE 4.2 Interest Rate Impact on October 1987 Crash Source: S&P earnings and price from 1988 to present from Standard & Poor's web site (www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500- usduf­p-us-l­); S&P monthly earnings for 1/86 to 11/88 from "Online Data Robert